Service tax setoff

Others 385 views 1 replies

Service tax is not applicable to us, but under reverse charge mechanism, for transport services we have to pay 25% service tax, so we got registered. So, can we take set-off of service tax paid on other expenses towards these payment of service tax under reverse charge?

What is the solution?

Replies (1)
Service receiver has to pay service tax of his part by GAR-7 challan. i. Cenvat Credit cannot be used to pay Service Tax by service receiver. Service tax is to be paid in Cash only.


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