Cenvat credit on reverse charge mechanism

This query is : Resolved 

26 July 2012

Dear Sir/Madam,

under this new service tax regime, certain part of the service tax need to be paid by provider as well as by service receiver. My question is that say 50 % need to be paid by the service received under this scheme can be paid through utilization of cenvat credit of 50 % paid to Service Provider.

Further I comes under service tax registration because of reverse charge only under Work Contract services. Under which service category i need to register ?

CA CS Amit S. Kedia (Expert)
26 July 2012

No, Cenvat credit can be taken only against output service. here, input service receiver is liable for service tax as a recipient.
Hence, first you will have to pay to the govt and can take the credit of the same against output service.

Pankaj Gandhi Jaiswal (Expert)
26 July 2012

Mr Amit is right and also there is no category as such earlier so no need of WC actegory now

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