Cenvat credit availment on partial reverse charge mechanism




My query is that when a service receiver who is liable to discharge certain portion of the serivce tax payable directly to the Government(say 75% in case of Man Power Supply) on the service received under the partial reverse charge mechanism discharges his liabilty by paying the full portion of service tax to the service provider (instead of paying 25% to Service provider and 75% to Govt, pays the full 100% to the service provider), is he eligible to claim CENVAT credit to the extent of 75% or the full 100%?

Chartered Accountant

The liability to pay on 75% if on the receiver- he needs to discharge.

If provider has charged on 100% to pay only 25% and ask the provider to revise the bill.


Legally he can avil the credit of 100% if charged by provider- unnecessary dispute possible.




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