Reverse charge mechanism 50-50, Service Tax

[Ramesh M]

As per Service tax Reverse charge mech. in works contract act, we are service provider, as per rule Service Provider to pay 50% and service reciver has to pay 50%, my doubt is, who will avail the credit  on 50% paid by service provider. Service Provider or Service Receiver. 

 

Kindly suggest

Posts / Replies

[Harsh Jindal]

You will avail the credit on 50% paid by you and service receiver will avail the credit of 50% paid by him.

[Pradeep Khatri]

Although, tax on balance 50% will be paid by the service provider but it will charged from you by the service provider at the time of raising the Invoice/Bill (as the case may be).  Since it would be paid by you, whether directly or indirectly, you may avail the CENVAT credit on such services after following the provisions of CCR, 2004 as amended time to time.