under reverse charge mechanism , ultimately the 100 % service tax liability is of the receiver only , he pays 40% to service provider on invoice raised by him, and 60% directly to government , take as an example????????
how much cenvat credit will a receiver and provider take under reverse charge mechanism , is receiver eligible to take full 100% credit , as he is bearing complete service tax liability , 40% paying to service provider and 60% directly to government.
Service receiver are eligible to take cenvat credit on two different time
1.On booking of invoice , you shall take service tax credit stated on invoices
2. when actual service tax payment is made under reverse charges , on the basis of challan you can take cenvat credit .
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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