As per Service tax Reverse charge mech. in works contract act, we are service provider, as per rule Service Provider to pay 50% and service reciver has to pay 50%, my doubt is, who will avail the credit on 50% paid by service provider. Service Provider or Service Receiver.
Kindly suggest
Clarification on Reverse Charge Mechanism: Both Service Provider and Receiver Can Avail Credit for Their 50% Share. A query was raised about the reverse charge mechanism under the works contract act, where both the service provider and receiver each pay 50% of the service tax. The question was about who can avail the credit for the 50% paid by the service provider. One response clarified that the service provider avails credit for their 50%, and the receiver for theirs. Another response noted that although the service provider pays the tax, it is charged to the receiver, who can then avail CENVAT credit after complying with the relevant provisions. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
