Reverse Charge, Service Tax

[Saurabh Singh]

Dear All

I have Following Query Relating to Reverse Charge Mechenisam of Service Tax

1. Can Service Reciver (SR) have to Pay Service tax even if Service Provider (SP) is not register Dealer and Does Not have  Service Tax No.

2. Can SR adjust its reverse charge liability against his available Input credit

3. As Given in act that SR can utilise service tax paid as input credit after payment but if he does not have any output liability than can he get refund of same.

 

Posts / Replies

[Harsh Jindal]

1. SR have to pay service tax if he is liable to pay under RCM.

2. Yes.

3. Yes.

[Pradeep Khatri]

Service recipant is required to pay service tax by cash through GAR-7 Challan or through on line payment.  CENVAT credit  can't be utilized to pay the service tax under partial reverse charge.

Though CENAT credit will be availabe on the basis of challan, this is also subject to the provisions and condition as stipulated in the Cenvat Credit Rule, 2004 as amended time to time. 

[Saurabh Singh]

Thanks mr Pradeep for ur reply but i am still not get cleared about my 3 rd doubt , which was what will happen if SR does not have output liability can he get refund

[Pradeep Khatri]

In case of Export of goods, refund of service tax may be available.