service tax payment under reverse charge mechanism

[Guest]

Dear Experts,

we are getting service under reverse charge mechanism in this base we are liable to make payment under service tax , service like (Man power , GTA.) same we are getting other services

like telephone bill , consultancy service etc. so my question is that i have to pay full payment through By cheque / cash of service under reverse charge mechanism or we can utilization against input service ..

regards,

Manan pandya

[Mahir S]

Sir,

service tax under reverse charge mechanism is to be paid in cash/cheque and thereafter input credit can be availed for such payments.

However, the input credit cannot be utilized for making service tax payment under reverse charge mechanism.

[Guest]

dear naveedji,

thank you for your guidance.

regards,

Manan PAndya

AI Summary

Reverse charge obligation: recipient must pay service tax by cash/cheque; input credit cannot be used for payment. Under the reverse charge mechanism the recipient is liable to discharge service tax by cash or cheque and must make the upfront payment; input tax credit may be availed after payment in accordance with input credit rules but cannot be used to meet the initial reverse charge payment obligation.