Sertax reverse tax mechanisim

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Munni

Munni (Querist)
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03 September 2012 Service Tax Paid for Rent a Cab Service under Reverse charge mechanism is eligible for Input Credit?

Arun Kumar Singh

Arun Kumar Singh (Expert)
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03 September 2012 Yes, eligible.

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RENGARAJ R.K

RENGARAJ R.K (Expert)
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03 September 2012 If the input service relates to your output service then it is eligible. Kindly check this point before availing the cenvat benefit.

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Munni

Munni (Querist)
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03 September 2012 As per Cenvat Credit Rules motor vehicles and their accessories falling under 8702, 8703,8704, 8711 and their chassis is not eligible for input credit.I think in a rent a cab service the vehicle is falling under the above chapters, then how it wiil be eligible?
plz explian breifly.

Munni

Munni (Querist)
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03 September 2012 Is the same Cenvat Credit rules & conditions apply for the input avilable on reverse charge mechanism?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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04 September 2012 The tariff no mentioned by is for capital goods cenvat availment.REstriction is only for capital goods. REnt a cab is input service. So, both are different. Rent a cab service can be taken for set off.

Munni

Munni (Querist)
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04 September 2012 For example in construction feild reverse charge paid in exempted project for rent a cab , security services & prw is eligibe for input?

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