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Service tax payb?e n ccr
M/S ABC is an SSP in p/y. takes a service from M/S XYZ(not SSP). and that service comes under Reverse Charge Machanism . whether M/S ABC is liable to s.tax under RCM. If yes whether he cn take ccr for the same?
Replies (4)
Small Service Provider (SSP) exemption of Rs. 10 Lakh is not available for a person liable to pay Service tax under Reverse Charge Mechanism. (Refer Notification 33/2012-ST dated 20.06.2012)
Please note that Service tax under RCM should be paid in Cash, i.e., without utilising CENVAT Credit. (Refer CENVAT Credit Rules, 2004)
However, Service receiver paying Service tax under RCM can avail CENVAT Credit for any Output Service, subject to CCR, 2004, on the basis of Challan evidencing payment of Service Tax.
Under RCM ABC has to pay S.Tax in cash without claim the ssp exemption limit and C/C because it would be input service for ABC
Under RCM ABC has to pay S.Tax in cash without claim the ssp exemption limit and C/C because it would be input service for ABC
Ok..thanks a lot to both
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