Service tax on manpower services

This query is : Resolved

Amarjit Singh (Querist)
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01 October 2012 Sir,
As per latest notification of service tax,in case of manpower services, the receiver of services has to pay 75% of service tax. I have a sufficient amount of CENVAT credit. Now, I just wanted to know that whether I can utilise such credit for payment of service tax on manpower service(75% portion) or we have to pay such portion only through challan.

Kaushik Vinod

Kaushik Vinod (Expert)
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02 October 2012 In Case of Reverse Charge Mechanism the S.Tax has to be paid in cash only. you can not utilize the CENVAT Theron.

Pralay Chakraborty

Pralay Chakraborty (Expert)
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04 October 2012 In any case of Reverse Charge mechanism the Service Tax is to be paid only in cash/only through challan by 5th of the following month.

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