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Reverse charge mechanism and input tax credit

Shuhaib S (Finance and Accounts Incharge) (36 Points)

03 June 2017

Can any one have answer for my below mentioned two doubts

Can I adjust Input credit of serivises for paying my reverse charge laiblility

eg: I have Rs 700 input credit for paying Rs 5000 agaist my phone bill and same way Iam liable to pay Rs 1000 agaist my secirity expense under reverse chrge mechanism, Can I pay as Rs 300 after taking credit input credit of Rs 700

and can I get credit of Rs 1000 (Full reverse tax amount) in next month serive tax calculation even I adjusted previous month reverse charge agaist input credit of previous month.

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3 Replies

CA Altamush Zafar (GST Consultant) (15986 Points)
Replied 03 June 2017

Service Tax payable under rcm have to be paid through challan ( credits cannot be utilised).
Further credits shall be available on service tax paid on rcm therefore credits of 1000 can be taken.

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Shuhaib S (Finance and Accounts Incharge) (36 Points)
Replied 03 June 2017

One more doubt Sir, after payment of reverse charge ,in next month can I take entire 15% credit or credit of 14.5% after excluding swatch bharath cess.