Cenvat credit on service tax

Queries 606 views 4 replies
Can you please explain the provision about availing cenvat credit? I understood from the input service definition that you cannot avail service tax paid on Directors fee.

Read more at: /forum/service-tax-on-directiors-233000.asp#.UN1676zLF4E
Can you please explain the provision about availing cenvat credit? I understood from the input service definition that you cannot avail service tax paid on Directors fee.

Read more at: /forum/service-tax-on-directiors-233000.asp#.UN1676zLF4E
Can you please explain the provision about availing cenvat credit? I understood from the input service definition that you cannot avail service tax paid on Directors fee.

Read more at: /forum/service-tax-on-directiors-233000.asp#.UN1676zLF4E
Can you please explain the provision about availing cenvat credit? I understood from the input service definition that you cannot avail service tax paid on Directors fee.

Read more at: /forum/service-tax-on-directiors-233000.asp#.UN1676zLF4E
Can you please explain the provision about availing cenvat credit? I understood from the input service definition that you cannot avail service tax paid on Directors fee.

Read more at: /forum/service-tax-on-directiors-233000.asp#.UN1676zLF4E
Can you please explain the provision about availing cenvat credit? I understood from the input service definition that you cannot avail service tax paid on Directors fee.

Read more at: /forum/service-tax-on-directiors-233000.asp#.UN1676zLF4E

Can we avail cenvat credit to set off service tax payable on directors fee.

 

Replies (4)

yes.

ofcourse you may.
please reply with why did u think u may not .

thank you

I disagree.

service tax on director's fee payable on reverse charge mechanism by service receiver has to be paid in cash. Only then cenvat credit can be availed.

Regards,

This is pursuant to Rule 4(7) 1st proviso of CCR 2004 as amended till date.

Cenvat Credit can be utilised for payement of Output liablity only, hence liability under reverse chagre shall be paid in cash then only we can claim it as input credit for setting off  Output liability

Therefor first you have to discharge your service tax liabilty under RCM in cash.

 


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