Service tax under reverse charge mechanism

Save Share

This query is : Resolved

Mahalingeswar Senapati (Querist)

11 March 2013 Sir,

1. Kindly explain that, Service Tax Under Reverse Charge Mechanism, what is the cenvet Credit portion, if service provider charges the service tax 12.36 %, In that case if our portion to liable to pay the service tax is 50% of the service tax i.e. 6.18% and remaining 50% by the service provider.

2. In case service provider raised bill without service tax, in that case what is the treatment by the service receiver under reverse chare mechanis ?

Thank YOu,

PAWAN KUMAR

PAWAN KUMAR (Expert)

11 March 2013 For question No. 1, If the work related to civil, service tax paid by you as well as by service provider are not claimable. If work related to other plant & machinery related work, service tax paid by both are claimable as cenvat.

For question No.2, you have to meet your liability irrespective of whether the service provider charge service tax or not.
You have to discharged your liability and if claimable, avail cenvat accordingly.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now