Hello Friends,
I have the following query regarding ST paid by Service Receiver under Reverse Charge Mechanism.
If the Service Receiver shows his ST on output service and ST on inputs in P&L A/c, then can he also show the ST paid on Reverse Charge Mechanism in P&L A/c?
Eg: Output Service 10000 , ST & Cess on Output Service 1236 <--- both these ledgers are part of P&L A/c
Input Service 1000 , ST & Cess on Input Service 30.9 (25%) <--- both these ledgers are part of P&L ST on above input service under RCM 92.7 (75%) <--- can i claim this as expense for IT purpose and general purpose, because if there was no RCM then I could have claimed the entire ST as expense.
Please Guide.
CAclubindia
