Legal Question in Tax Law in India

HI,

We have gone through your query. We understand that you have paid the service tax on reverse charge mechanism. Reference has to be made to Taxation of service ( Provided from outside India and received in India) Rules , 2006.

Rule 5. Taxable services not to be treated as output services.� The taxable services provided from outside India and received in India shall not be treated as output services for the purpose of availing credit of duty of excise paid on any input or service tax paid on any input services under CENVAT Credit Rules, 2004.

Therefore According to the above rule Service tax paid under Section 66 A is not to be treated as output service tax but can be treated as Input service tax paid and CENVAT for the same can be availed for the purpose of payment of service tax on output service rendered.

Thus for you the answer is yes, you can take the credit of the service tax paid in cash under section 66 A

Should you need more information or clarifications , feel free to get in touch with us.

Regards

Ph: 09811617186

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