Credit of service tax paid under reverse charge, Service Tax

[Kaustubh Karandikar]

XYZ paid service tax under reverse charge on 05.07.17 against the liability for June’ 17 and claimed credit of the same in the ER – 1 Return for June’ 17. Is it the correct way or they should have claimed it through TRAN – 1? Excise audit party is objecting the same saying that they should have claimed through TRAN – 1. What is the correct legal position?

Posts / Replies

[Mahadev R]

Only way was to show it in either ER-1 or ST-3 return as there was no provision to show such credits of tax paid on RCM in July 17 in TRAN-1.

[KASTURI SETHI]

It is technical lapse. Relief is cock-sure but after facing the rigours of litigation and matter may travel up to Tribunal. No hope prior to that stage.