Service Tax Payable under Reverse Charge mechanism

[Rahul Patel]

Dear Sir,

Service Tax for the month of March'2014 is payable till 31st March 2014,

we will be taken provision of various invoices in March' 2014 till 10 th April '2014 the same invoices is related to Manpower , Work Contractor , Tour Operator etc it means reversed charge mechanism is involved.

now my query is that:

is Service Tax under reversed mechanism charge is payable on provision which we have taken after 31 st March' 2014 in our financial books.

Please guide us as per point of taxation rule.

With Regards,

Rahul Patel

AI Summary

Service Tax Under Reverse Charge: Liability Arises Only Upon Payment, Not on Provisional Expenses Recorded Post-March 2014. A query was raised regarding the applicability of Service Tax under the Reverse Charge mechanism for provisions made in March 2014, with invoices related to services like manpower and tour operators. The concern was whether Service Tax is payable on provisions recorded after March 31, 2014. The response clarified that Service Tax liability under Reverse Charge arises only upon payment to the service provider for their invoice, and there is no obligation to pay Service Tax on expenses booked provisionally.