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Service tax on reverse charge mechanism

This query is : Resolved 

03 September 2013 Service tax paid on reverse charge mechanism can be utilised by service recipient as CENVAT credit? Can it be claimed by him as refund if not claimed as CENVAT credit?

Please quote appropriate rule or section for your explaination.

03 September 2013 Yes, Service tax paid by recipient under reverse charge system can take the cenvat credit of duty paid output services or goods. if goods and services are exported then claim for refund.

05 September 2013 If the service receiver receives input services and pays service tax on the same under reverse charge then can he utilised it as cenvat credit? (Irrespective of partial or total reverse charge)


05 September 2013 Yes, he can utilised as a input service.

06 September 2013 But, can not utilise for the payment of service tax liability under RCM



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