Reverse Charge

[MITSUI PRIME ADVANCED]

Dear Sir,

 

Yesterday Complited our Comm. Audit period form June 2011 to  July 2012.

 

audit Supritendent given suguation that is Reverse chage Service Tax which is applicable form 01.07.2012, Not requeid for Paid in cash, utlized from your Service Tax Credit Balance.

This is right or worng.

but till date not provide any notificaion or circu

 

Please provide your valuable suguation/advice

Regards

 

Arjun Sachdeva

AI Summary

Reverse Charge Service Tax from July 1, 2012: Cash Payment Required, Cenvat Credit Not Applicable for Liability Fulfillment. A query was raised regarding the applicability of reverse charge service tax, effective from July 1, 2012, and whether it could be paid using the Service Tax Credit Balance instead of cash. Two replies were received. The first response clarified that under partial reverse charge, the service recipient must pay the service tax in cash by submitting a GAR-7/TR-6 challan. The second response confirmed that the service recipient cannot use Cenvat Credit to fulfill the reverse charge liability. The discussion emphasized the requirement for cash payment in such cases.