Sunday, 17 January 2016

Cenvat credit couldn't be utilized to pay service tax under reverse charge on import of services

Service Tax : In case of import of services under section 66A, assessee is deemed to be service provider only for purpose of paying service tax; insofar as Cenvat credit is concerned, imported service cannot be regarded as output service and, therefore, credit balance cannot be used to pay service tax under reverse charge on imported services.

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