CA SONIYA AGARWAL (self practice) (3005 Points)
16 May 2013under 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.
Shankar Mishra
(services)
(30 Points)
Replied 17 May 2013
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 .
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
