04 June 2016
Dear Sir/Madam,
Below are few queries I have regarding service tax :
1. Rent a Cab - we are renting cab for our employees for night shift..Vendor is charging 50% of Service Tax and he is individual.. can the company take Cenvat Input Credit ?
2. accommodation - our employees took accommodation in other city for client meetings etc. Hotel ppl charged Cenvat Input Credit... can company take this Input Credit ?
3. On client invoices - we were issuing original invoice copy say 15/16/001 but when same invoice had some changes in invoice amount, we never collected original invoice but raised a revised invoice no. as 15/16/001 revised... we have paid correct to ST dept but can our client consider twice input credit for this ? if yes, how to avoid this in future ?
07 June 2016
1)Rent a cab is specially excluded from definition of input service. Therefore, you can't take input credit. Moreover you need to pay ST on 50% of value under reverse charge mechanism 2) Yes, you can take input of Cenvat credit charged by Hotel. 3) Your client can take input credit only against revised invoice. Just mention Revised invoice on correct bill raised with original bill reference.
09 June 2016
Thank you for clarifying ...
1. understand and we are paying RCM
2. We are currently undergoing Audit with ST dept. They say no for hotel input credit availed. Pls advise, how to take this further ?
3. yes, we mention as revised invoice but Superintendent says... since you issued two invoices one original and another revised, client can avail both input credit as they have two original invoices.. tried to convince they to see bank statements too.. but, they insist us to pay for all reversed invoice, which were created originally... pls advise on this also.
07 August 2016
1) CENVAT credit can't be taken even paid under reverse charge for Rent a cab 2)Hotel bill should be bifurcated into two parts for food and room rent for cenvat credit. In case of food input credit is not available. 3) You can go for further appeal if they will charge service tax on both original and revised invoice. Input credit is the part of service receiver. Service provider can't be liable for wrong input credit taken by service receiver.
CAclubindia
