Reverse tax machanism

Service Tax (Legacy) 193 views 1 replies
Tour operator services : under this category , we are tour packages for our guests which include hotel booking ,transfer(cab operator),guide service etc.., we are in the practice of remitting service tax @ 4.5% on the total bill amount. for the transfer involved in this package . we usely hire service from out side cab operator and reccive invoice wit and without service tax ,in this case , what will be our service tax liability under the reverse tax mechanism ,if we are liable to pay service tax.on the above case ,can claim input tax for the applicable service tax remittted on cab operating service
Replies (1)

Yes you are eligible for Input tax credit for the service tax paid under reverse Charge... as it is used in generating the output services... but input tax credit cannot be used to setoff the service tax liability under reverse charge... so you should pay the service tax on Reverse charge and avail.. input credit...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details