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Service tax Credit observation

Service Tax - Started By: - Pradeep Kumar - Dated:- 6-1-2016 Last Replied Date:- 8-1-2016 - Dear All Kindly provide your opinion on the following observations :- a) As per rule 7 of Point of taxation rules, 2011 , Service tax under reverse charge is required to be paid at the time of payment of Value of service to the party concerned. one exception is there, if payment is not made within a period of 3 months from the date of invoice, POT will be the date immediately following the period of 3 mon .....

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s indicated in the invoice, bill or, as the case may be, challan referred to in rule 9, is not made within three months of the date of invoice ,then manufacturer shall pay the amount of cenvat credit availed on such input service and the same will be allowed as and when the payment will be made by manufacturer. My Queries in the above provision :- Trade payable parties have balances outstanding for more than 3 months and against such balances company has taken service tax credit(other than rever .....

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service tax on Reverse Charge Mechanism can be taken only after the payment of service tax to the credit of the Department. For the second question - The credit on input service can be taken at the time of receiving the invoice. But the said invoice shall be paid within 3 months from the date of invoice. If you are not able to pay the said invoices you have to reverse the credit already taken. - Reply By Pradeep Kumar - The Reply = Thanks Ganeshan and Mariappan sir @Mariappan sir, than what is .....

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ice tax 14%. then company passed entryLegal services ac dr 100000Service tax recoverable ac dr 14000To Advocate ac 100000To service tax payable ac 14000Now client paid the liability of service tax in the month of august(5/6th) and take the credit in the month of august,2015 which will be used to set off against September 2015 service tax liability. Now assume payable to advocate not made till December,2015, now my observation was that as company has taken the benefit of service tax credit agains .....

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1.04.2015 in case the payment of the value of input service and the service tax paid or payable as indicated in the invoice, bill or, as the case may be, challan referred to in rule 9, except in respect of input service where the whole of the service tax is liable to be paid by the recipient of service, is not made within three months of the date of the invoice, bill or, as the case may be, challan, the manufacturer or the service provider who has taken credit on such input service, shall pay an .....

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