Hi I am doing the audit of a hotel. There the calculation of service tax is as follows.
1) Service tax
2) Add : Tax due on Reverse Tax
3) Less : Cenvat
= Total service tax payable.
Could you please let me know what is this ' Tax due on Reverse Tax ' ?
I think this might be the service tax payable on reverse charge basis(i.e. payable by service receiver).
N/N 30/2012 specifies some services on which the service tax is payable fully/partially by service receiver instead of service provider(e.g. GTA,Security,Legal services, etc)...
However, while paying tax under reverse charge mechanism, no CENV AT shall be availiable for making such payments.
Service Tax -CENVAT Credit = Total Service Tax Payable.
Tax on Reverse Charge is to be paid separately and no CENVAT Credit can be claimed on it.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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