When can a Service Recepient take the Credit Of Service Tax when he is liable to pay Tax under the mechanism of Reverse Charge on behalf of Service Provider?
Vibhor Gupta (Article Assistant) (58 Points)
15 April 2013When can a Service Recepient take the Credit Of Service Tax when he is liable to pay Tax under the mechanism of Reverse Charge on behalf of Service Provider?
Manoj Agarwal
(Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com)
(3456 Points)
Replied 16 April 2013
A Service Recipient is not allowed to utilize Cenvat Credit for payment of service tax on reverse charge. So, every service recipient has to pay service tax though GAR-7 Challan. However, subject to other conditions, if a service receiver is a provider of output service, he can take credit of service tax paid though GAR -7 under reverse charge, immediately after the payment on the basis of receipted GAR-7 Challan.
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