Cenvat on rent a cab if provider is company

This query is : Resolved

Rajiv (Querist)
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29 April 2015 GOOD AFTERNOON SIR,
CENVAT CREDIT ON IN CASE OF ADVOCATE IS ELIGIBLE. BUT SIR WE RECEIVED A BILL OF CONSULTANCY CHARGES FROM A ADVOCATE WHO IS COMPANY. THEN HE ADD SERVICE 12.36% IN THEIR BILL. THEN I WANT TO KNOW THAT CAN I TAKE CENVAT CREDIT OF THIS SERVICE TAX AMOUNT.
BILL = 50000
SERVICE TAX @ 12.36%=6180
TOTAL=56180
THANKS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 April 2015 Cenvat credit:
If business entity pays service tax under reverse charge, it can take cenvat credit for it and utilize it for payment of service tax and excise.
Legal service is input service as per definition (rule 2(1) of cenvat credit rules, 2004).
In your case the company paid service tax, cenvat credit can be claimed on it.

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