Time limit for availment of credit under Rcm

[Guest]

Dear Sir, As per new notification 21/2014 under service tax paid partly reverse charge but how to avail partly service tax paid by service provider, please explain in simple words thanks and regards

[YAGAY andSUN]

Dear Sandesh,

In case of service tax paid under full reverse charge, the condition of payment of invoice value to the service provider for availing credit of input services is withdrawn. However, there is no change in respect of partial reverse charge. [Refer amended proviso to rule 4(7)].

Notification 21/2014 is self explanatory, please dig deeper.

Regards,

YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Reverse charge mechanism: full RCM removes the payment-to-provider condition for input tax credit, partial RCM retains it. For full reverse charge the payment-to-provider precondition for availing input service credit is withdrawn; for partial reverse charge that precondition remains applicable, as set out in the amended proviso to rule 4(7), with Notification 21/2014 providing the governing text.