Payment of Reverse Charge Service Tax

[Ashok Chopra]

Respected Forum,

I am exporter, not registered with Central Excise  and  paid  lot service tax on  various input services not booked as expense in books.  Can i set off my monthly liability of Payment of Reverse Charge with the credit or i am liable to pay in cash and take further credit on bank challan, which will be accumulated.

How Can i get refund this  Service tax.

An exporter who is not registered with Central Excise, can he file refund under Rule 5 of  Cenvat Credit Rule, 2004 as UNUTILIZED CREDIT or there is any procedure or i should accumulated it and book as expense.

waiting for kind advice

[anil gupta bhikaji]

Dear Ashok ji

As you are an exporter you can claim refund under rule 5 of CCR.  

Regarding tax deposited under reverse charge that is nothing else but your Input

tax credit.you can claim refund of the same also. regarding setting off monthly liability of payment with reverse charge credit that is not possible as it is itself a input tax..

AI Summary

Reverse charge input tax credit refundable for exporters; cannot be used to offset monthly liability, claim under Rule 5 CCR. Reverse charge tax paid on input services by an exporter not registered with Central Excise is input tax credit and may be claimed as a refund under the Cenvat Credit Rules; it cannot be used to offset monthly service tax liabilities and should be recovered through the refund procedure rather than booked as an expense.