Sorry friends,
I know this topic has been discussed several times under this forum. but still i need some clarifacation on it.
Let us go by example so that it will be easy to understand,
A company is provider of services. Following is the summary of service tax for April 13.
1. Sales Rs. 100/- service tax collected on it Rs. 12/-
2. Purchases Rs 60/- service tax paid on it Rs. 8/-
3. Service receipent for GTA, tax payable on it under reverse charge Rs. 2/-
Therefore service tax payment for the month of April 13 = Rs. 12 + Rs. 2/- (GTA) - Rs. 8/- = 6/-
Now my question is can we claim the credit on Rs. 2/- which we have paid & adjust in next month's tax liability?
& also should this Rs. 2/- be paid by using separate challan in april 13?
CAclubindia
