Q and a,sevice tax-2

Informative post...Keep Sharing...

it's very good posting...

Very informative and useful post.......Thank you Navin Sir...

Informative Post. However you could also throw some light on reverse charge applicability in case of opted for abatement or not which is 100% service tax payable by service receiver on abated value and 40% by SR & 60% by SP in case of abatement not taken. So in case abatement is opted for no service tax is payable by the service receiver so where is the question of taking any credit for payment of service tax as no service tax is payable by the service receiver in case of abatement opted for.

thanks for sharing.......

Dear Aditya Sir,

As per the notification, if abatement is opted for, the entire liability would be on the SERVICE RECEIVER.

Where abatement is not opted, the proportion of liability would be in the ratio of 60:40 between SP and SR.  This facilitates, the SP to avail the credit of CENVAT paid on inputs, capital goods and input services.

The above seems very logical considering the notification which provides for condition of not availing the credit if abatement is opted for.

thanks for the information.