Reverse Charge

[Saurabh Singh]

Dear All

I have Following Query Relating to Reverse Charge Mechenisam of Service Tax

1. Can Service Reciver (SR) have to Pay Service tax even if Service Provider (SP) is not register Dealer and Does Not have  Service Tax No.

2. Can SR adjust its reverse charge liability against his available Input credit

3. As Given in act that SR can utilise service tax paid as input credit after payment but if he does not have any output liability than can he get refund of same.

 

AI Summary

Service Receiver Must Pay Service Tax Under Reverse Charge if Provider is Unregistered; CENVAT Credit Limitations Apply A discussion on the reverse charge mechanism of service tax addressed whether a service receiver (SR) must pay service tax if the service provider (SP) is unregistered. It was clarified that the SR is liable to pay under reverse charge. The SR can adjust this liability against available input credit, but cannot use CENVAT credit to pay the tax under partial reverse charge. Refunds may be possible if there is no output liability, particularly in the case of export of goods. The conversation involved multiple participants seeking and providing clarification on these points.