Input tax credit under reverse charge mechanism

Queries 663 views 3 replies

Hi Sir,

I had a small doubt on RCM 

Ours a Construction Company, we are receiving services such  as

1.works contract

2.Man Power Supply

and we are liable to pay Service tax under RCM. 

Here my doubt is whether can we claim Input Credit of Amount which we are paying under RCM to Department ?

Let me give an Example.

We received a service of man power supply for July, for which invoice raised for Rs.100 and we paid 100(1+14%) ie.114 out of which 100 is credited to party and 14 is paid to Department. can  we take credit of Rs.14 paid to department ? If so when?

Thanks & Regards

sasidhar. V 

Replies (3)

You can take credit after paying amount to govenment.

Originally posted by : Deepak Tapse
You can take credit after paying amount to govenment.

the credit available only relating to manufacturing activity

 

Under partial rcm how much a servicer receiver can claim as input tax  credit partial or full ? Kindly Please explain with sections,,,,,,,,


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