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Availment of cenvat credit of service tax paid

This query is : Resolved 
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31 July 2015 As per recent notification w.e.f 01-04-2015, 100% reverse charge has been introduced in case of provision of service of manpower supply by individual, proprietor, HUF, partnership or association of person to any entity registered as body corporate. I m doing statutory audit of a bank whereby it pays 100% service tax on service provided by security service provider as well as services provided by telecommunication service provide; however it takes credit of only 50%. I think it is incorrect and the bank is eligible to take 100% CENVAT credit. I want to know whether the bank's treatment is correct or not? If yes, then kindly explain along with supporting notification/circulars, if any.
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Harshal Fifadra

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Harshal Fifadra (Expert)
02 August 2015 The treatment of bank is incorrect. The bank is eligible to claim 100% input credit.

There are no supporting notifications/ circulars in this regard. The law itself is very clear for an assessee to claim input credit in respect of RCM services as per Rule 4(7) of Cenvat Credit Rules, 2004.
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