Solve query plz

Reverse Charge is the tax to be paid on the behalf of the service provider or receiver as the case may be.

You can't adjust reverse charge from service tax total liability.

Both tax must be paid separatly under different heads as per nature of service.

You have to pay Rs. 5000 under reverse charge and Rs. 35000 under other than reverse charge ( as you said that 40000 including reverse charge of Rs. 5000)

Thanx & Regards

Piyush Tanwar

Internal Auditor cum Senior Executive Finance

Swagatam Tours Private Limited

New Delhi

Mobile : +91 9717468521

Email - capiyushtanwar91 @ gmail.com

I agree with Piyush. Further, such ST paid under RCM can be availed as input credit after actual payment of tax.

@ Ashok: ST liability of 35k is for may. if 5k is paid in june under RCM, how can the same be adjusted against may month liability?

ST Payable 35000

Reason : ST under RCM paid during current month will become input service CENVAT for this month and will be adjusted in the next month.