Service tax credit allowed in foreign service received

Service Tax (Legacy) 539 views 4 replies
I am received in foreign service of consulting engineers service i am paid to service tax my que. is service tax credit allowed and not aalowed
Replies (4)

For credit of service tax, follwoing condition must be fullfill:-

1.Service Provider in india

2. Service receiver in india 

if above condition is satisfied then ur liable to claim service tax credit.if above condition not satisfied than  service receiver is liable to pay service tax and take credit.

 

service receiver in india

Yes credit allowed since u have paid st under reverse charge 

As the services have been received from the foreign, reverse charge shall apply and service tax shall be paid by service recipient. Since you have paid the service tax under reverse charge, credit of tax will be allowed. One thing should be noted that credit will be allowed only the part of basic service tax ( i,e 14%) and not of Swatch bharat cess


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