Service under partial reverse charge

Dear Friends,

Please answer the following question

Service provided under partial reverse charge : Manpower Supply

25% service tax is included in invoice & 75% is paid under Reverse Charge

A. When the credit for 25% ST is to be availed ? (At the time of receipt of invoice or at the time of payment of value and service tax)

Replies (4)

Amount of CENVAT Credit available in the invoice, i,e., 25%, can be availed on receipt of the invoice by the Service Receiver.

1. U can Avail Credit of Both 25 % and 75 %

2. Availment of 25 %  - on date of Invoice

3.Availement of 75 % - on date of Payment through GAR - 7 challan

4. time Limit for Taking Credit : rule 4(1) CCR : CC should be taken Within 6 Months from date of issue of any duy paying document ( Invoice , BOE , GAR - 7 challan etc. as applicable )

Note : time limit is only for ' taking credit'  There is no time limit for utilization of CC . Once you ' take' credit in your records , you can utilize it any time without any time limit

 

HOPE YOUR QUERRY IS RESOLVED !

25% on date of receipt of invoice not on date of invoice.

Rest as said above.

Dear Soham As per amendment in Rule 4(7) of CENVAT Credit Rules, 2004 Where part of the ST is to be paid by the service receiver and remaining part by service provider, then CCr of such input service shall be allowed after the date of payment of value of service and service tax. I think, this apply for 25% portion to service receiver.

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