cenvat credit rule in case of Import of service

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Hi

what is the service tax liability in case of import of services if I import the service of Rs 100000/-

Can I take the Cenvat Credit on payment of such service tax?

Replies (1)

In the case of 'import of service'  service tax is calculated by using reverse charge method .If the total amount of receipt is 100000 then S.tax+Edu.cess+SHE is eqaul to 9338.

Rule 5 of Taxation of Services (Provided from outside India and Received in India) Rules, 2006 clarifies that the taxable service will not be treated as output service of the recipient for purpose of availing of Cenvat credit of duty of excise paid on inputs or service tax paid on any input services.Hence the receipent shall pay the service tax amount in cash only


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