We are receiver of GTA service... We pay service Tax @ 4.2 % on invoice raised by service Provider(GTA). Now my question is being the service receiver can we take input of the tax paid under reverse charge and utilise it against Service Tax liability..??
No, service tax paid under reverse charge mechanism has to be discharged in cash only and no credit is admissible for same.
I think Siddhartha is asking whether the Service tax paid under reverse charge mechanism be available as Cenvat credit to pay the Service tax liability. In this, case, if such services are used directly or indirectly for manufacture of final product, then the Cenvat credit on such amounts should be available except on the outward transportation of goods. [Rule 2(l) of the Cenvat Credit Rules, 2004]
| Originally posted by : Vikas Vishwakarma | ||
 |
I think Siddhartha is asking whether the Service tax paid under reverse charge mechanism be available as Cenvat credit to pay the Service tax liability. In this, case, if such services are used directly or indirectly for manufacture of final product, then the Cenvat credit on such amounts should be available except on the outward transportation of goods. [Rule 2(l) of the Cenvat Credit Rules, 2004]
we are trader and pay Reverse service charge on Freight....and we have service tax liability on commission ccharged by us... now in this case can we utilise service tax paid on freight...?? |
 |
Hi Siddharth,
I believe you should still be able to use the Cenvat credit on such payment, except for the outward transportation. Refer Rule 2(l)
very helpful for reverse charge understanding.
/share_files/amended-reverse-charge-mechanism-rcm-2015-67555.asp
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
