Cenvat credit

if u r service provide in reverese charge mechanism scheme then u can  utilize credit but if u r service receiver then u cannot utilize the credit

@ CA SUMMIT GUDDEWALJI CAN U PLS EXPLAIN,

how to calculate liability under RCM for car hire chares paid.

thanks for ur reply.

 

Best Reards

Navin.

The service recipient would need to discharge liability only on the payments made by him. Thus the assessable value would be calculated on such payments done (Free of Cost material supplied and out of pocket expenses reimbursed or incurred on behalf of the service provider need to be included in the assessable value in terms of Valuation Rules). The invoice raised by the service provider would normally indicate the abatement taken or method of valuation used for arriving at the taxable value. However since the liability of the service provider and service recipient are different and independent of each other, the service recipient can independently avail or forgo an abatement or choose a valuation option depending upon the ease, data available and economics.

kkk one more ,

can we take the tax paid under RCM as cenvat Credit to be setoff against output services provided.

yups u can

yes you can take it.

Dear Friends ,

 

We  paid Service Tax of 5,000 under reverse charge mechanism, where we received service from our lawyer..

My query are we able to take 5000 as Input credit.