Dear All!
Please clarify me in this regard. A Pvt Ltd is engaged in O&M business. For travelling to the sites, the company hires motor vehicle from B Co (individual/firm). B Co is not registered with service tax. Since, this falls under reverse charge mechanism, A Pvt Ltd pays 40% of service tax (its portion of 12.36%) and avails credit.
Is the company eligible for cenvat credit?
Kindly clarify with the relevant provisions.
Cenvat credit cannot be availed on car hire charges since there is a specific restriction in CCR. Refer Rule 2(l) - input services defn.
Revert for further clarification if any.
Rgds,
CA Kanagaraj R
Could you please quote the text of such rule
A R JADHAV AND ASSOCIATES
Mumbai
CA Inter
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