Cenvat credit under service tax rcm

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

"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).