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Service Tax paid on reverse charges for June 2017

(Guest)

whether credit for service tax paid on reverse charges for Jun 2017 can be taken in June 2017 liability, or will be continue to GST.

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3 Replies

Vinod Araveti (Practicing CA) (1180 Points)
Replied 04 July 2017

1. when the payment to service provider has been made before 30th june and service tax has been paid before 30th june then assessee can take the credit in the june return.

2. when the payment to the service priovider has been made before 30th june but service tax has been paid after 30th june then assesse can't take the credit. Because the the deportment can object the taking of such credit in june month return.

3. When the payment to the service provider has been made after 30th june but the service tax has been paid before 30th june then assesse can take the credit. there is chance that the deportment can object the same because the taxliability araised in the GST regime i.e 1st july. So the deportment can ask the to pay GST on the same.

(Guest)

OK, now how ST paid on reverse charge for June in July will be treated. How its credit will receive.

Manoj Sharma (Student) (22 Points)
Replied 05 August 2017

What happen when service tax is payable on reverse charge (on payment basis) and payment made to service provider is after 30th June 2017 and service tax is not paid within 30th June 2017 as the service tax is due to be paid on payment basis under reverse charge.