Service tax under notification 30/2012-service tax

Dear Colleagues,

As per the notification 30 of service tax, service tax with respect to legal services taken shall be paid by the receiver. Does this mean that the receiver cannot claim service tax credit on legal services taken?

Kindly reply soon and with some proof as far as possible.

Thanks in advance.

Replies (5)

As per the above notification receiver has to pay service tax because of reverse charge mechanisim.

This service tax has to be paid in cash without utilising any CENVAT credit.

CENVAT credit of service tax so paid can be claimed on the basis of paymnet challan.

In such cases can I deduct from the payee's invoice the amount I am paying to revenue under reverse charge mechanism. Regards,

Agree with Manish

The receiver of the service pays Service tax and you can claim input credit on the same.

Dipjyothi

There is no ST on the service providers invoice, hence it is the responsibility of the service receiver to pay service tax.

Can I claim credit in the same month as of payment of liability.

For Eg: ST Liabilty arises in the month of September, 2012. I pay ST Liability on 06th Oct, 2012. Can I avail credit also on 06th Oct, 2012? That is to say that I claim credit in front of liabilty.

Or is it that I can avail credit only in the next month i.e.06th Nov, 2012 since by this time I would have received payment challan?

the input credit is avaliable to you after you pay the amount to exchequer, ideally you should use it for 6th Nov

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