Cenvat availment

Dear Sudhir, services provided by way of renting of motor vehicle is specifically excluded from the definition of Input Service under Rule 2(l) of CENVAT Credit Rules,2004 w.e.f  01.03.2011 and hence CENVAT credit, per se, is not available.

As per the said definition, CENVAT Credit is available only if rent-a-cab serivce is relating to the motor vehicle which is Capital Goods, that is, for a person providing output service of (i) transportation of passengers or (ii) renting of motor vehicles or (iii) imparting motor driving skills.

Other than for the above mentioned output service providers, CENVAT credit is not available on rent-a-cab services.