Cenvat credit under service tax rcm

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Our company used to pay service tax on following under RCM

1.Good Transport agency

2.Vehicle hire charges

3.Advocate service

4.Manpower supply

Now, Whether service tax paid in above mentioned services are available as CENVAT credit?

Replies (11)

Dear Kabra

CENVAT credit of RCM payments can be avialed based on GAR- 7 challan payments provided they satisfy the definiton of Input service as per CENVAT Credit Rules 2004 i.e in simple terms it shall have nexus with the Output service of you company. 

Further  CENVAT credit on vehicle hire charges (Rent a cab ) is excluded from Input service defifniton provided it is not a capital good to output service provider. In simple terms hiring of vehicle which will be capital good to you is only eligible for CENVAT other than those are not available.

Hope it is clear

 

We are infrastructure companies involved in construction of road & bridges, so as per you CENVAT credit will be available on the above mentioned services except Rent a cab.

Yes Mr. Kabra

Service tax paid on any service which is used to provide an output service is allowed as credit. Further, credit is allowed for legal services as mentioned by you no matter it is paid under RCM same is for the GTA services you can enjoy the CCR (input credit) benefit even after paying s.tax on GTA on abated value (ie., @ 30%)
Agreed wid karan narula
Agreed wid karan narula
Agreed wid karan narula
Agreed with Mr. Karan Narula
Agreed with Mr. Karan Narula
Rcm credit is also eligible if it is deposit within 6 month frm date of taking credit n except rent a cab rcm credit is allowed on GTA,manpower,advocate for construction company

"input service" means any service used by a provider of taxable service for providing an output service.

"Output Service" as per rule 2(p) of Cenvat Credit Rules, does not include the GTA service (referred to in sub-clause (zzp) of clause (105) of section 65 of the Finance Act).


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