Tanmay Kabra (Sr. Executive - Audit) (94 Points)
16 December 2015Our company used to pay service tax on following under RCM
1.Good Transport agency
2.Vehicle hire charges
3.Advocate service
4.Manpower supply
Now, Whether service tax paid in above mentioned services are available as CENVAT credit?
Ajay Chandramouli
(Article Assistant )
(334 Points)
Replied 16 December 2015
Dear Kabra
CENVAT credit of RCM payments can be avialed based on GAR- 7 challan payments provided they satisfy the definiton of Input service as per CENVAT Credit Rules 2004 i.e in simple terms it shall have nexus with the Output service of you company.
Further CENVAT credit on vehicle hire charges (Rent a cab ) is excluded from Input service defifniton provided it is not a capital good to output service provider. In simple terms hiring of vehicle which will be capital good to you is only eligible for CENVAT other than those are not available.
Hope it is clear
Tanmay Kabra
(Sr. Executive - Audit)
(94 Points)
Replied 16 December 2015
We are infrastructure companies involved in construction of road & bridges, so as per you CENVAT credit will be available on the above mentioned services except Rent a cab.
karan narula
(CA)
(43 Points)
Replied 16 December 2015
hasmukh vishariya
(Article & Student)
(25 Points)
Replied 16 December 2015
hasmukh vishariya
(Article & Student)
(25 Points)
Replied 16 December 2015
Navneet Rajput
(ca)
(22 Points)
Replied 17 December 2015
Ravi Soni
(Executive in Corporate Advisory)
(54 Points)
Replied 19 December 2015
"input service" means any service used by a provider of taxable service for providing an output service.
"Output Service" as per rule 2(p) of Cenvat Credit Rules, does not include the GTA service (referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act).
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