STax payment from CENVAT / Cash

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..... STax payment from CENVAT / Cash
Query (Issue) Started By: - AJAY AGRAWAL Dated:- 29-7-2016 Last Reply Date:- 17-9-2016 Central Excise
Got 6 Replies
Central Excise
Dear experts, Can anybody describe in detail whether in any case payment under RCM & against declared services can be made from Cenvat Credit ? Reply By Ganeshan Kalyani: The Reply: Sir, the provision is very clearly in .....

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..... mentioning that the service tax liabilit under reverse charge cannot be paid through Cenvat credit. It has to be paid by cash only. And as regard declared service if it under reverse charge then the above condition apply. If not that Cenvat credit can be used to pay the service tax liability. Thanks. Reply By Rajagopalan Ranganathan: The Reply: Sir, Rule 2 (p) of Cenvat Credit Rules 2004 stat .....

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..... es that "output service" means any service provided by a provider of service located in the taxable territory but shall not include a service,- (1) specified in section 66D of the Finance Act(Negative list); or (2) where the whole of service tax is liable to be paid by the recipient of service. To pay service tax utilizing cenvat credit you must be a service provider. By the above definition wh .....

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..... ere the whole of service tax is liable to be paid by the recipient of service is not an 'output service. Therefore where the whole of service tax is liable to be paid by the recipient of service such recipient of service cannot be treated as output service provider and therefore he has to pay service tax by cash only. Reply By KASTURI SETHI: The Reply: Clear-cut replies by both experts. No d .....

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..... oubt left. Reply By AJAY AGRAWAL: The Reply: Dear experts, Thank you very much. Reply By YAGAY AND SUN: The Reply: Liabilities under RCM can only be knocked off through making e-payments (through cash) only. Reply By Ganeshan Kalyani: The Reply: Clear cut reply has been posted by Sri. Rajagoplan Sir. Anyway Thanks M/s. YAGAY and Sun for touching upon the query. Thanks. Enriching.
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..... sion Forum - Knowledge Sharing .....

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