Service tax credit - rcm

Queries 310 views 2 replies

gupta

Accountant

305 Points Joined April 2013

Dear All

We are a brand designing company. Sometimes we are getting job done from a artwork designer from UK.We are getting invoices from him for his job.We are depositing Service Tax on his bill as on when we makeing payment to him and we are also taking credit the same ST amount ( under RCM) in the same month ( when we deposited the ST amount ). Now my question is ---

1) any time gap is required for taking Credit the ST amount.

2) Is there any time limit for taking credit the same.

Regards

Jayanta

Replies (2)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

1) If payment made as due for ST payments made for say Dec 15 in 5/6th Jan 16 then credit only available only in Jan.

2) 1 year for the date of payment of challan for inputs services referred to by you as per Rule 4(7) of the CCR. For inputs it is Rule 4 (1).

gupta

Accountant

305 Points Joined April 2013

Dear Sir,

We are depositing ST on the same month ( which month the amount paid to the consultant ), say example if we paid in Dec then we are depositing ST in Dec, and I am taking credit in Dec --- Is it correct or I have to take credit in Jan.

Regards

Jayanta