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?
Menu
Cenvat credit under service tax rcm
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).
Recent Threads
- Paying Rent in Cash: This Could Trigger an Income
- Market Down, Portfolio Down: Need suggestions for
- How much tax is payable If I withdraw my mutual fu
- GST Penalty Provisions under Section 73 vs Section
- How VFA Academy Helps Traders Build Discipline and
- GSTR-3B Relationship
- Section 194T: TDS on Payments to Partners: Applica
- Tax planning with HUF
- FCN ( Financial Credit Notes) Treatement in Books
- Indemnity bond notarization for Income Tax (NRI ou
Related Threads
CAclubindia
