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Cenvat under wct

Subramani V (Accounts & Audit Incharge) (20 Points)

02 November 2012

w.e.f 01.07.12, as a company we have to pay 50% of WCT as Service Receiver on Service Provider bills (in case of other than company), our doubt is, the 50% paying on service provier bill by us, is it eligible for CENVAT. We are reg. under WCT and charges @ 4.8%. Pl clarify thanks

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3 Replies

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 02 November 2012

If you are a service provider and the service received by you is your input service used for providing the output service, then cenevat credit is admissible. If the resultant of the service is a capital asset in your hands, cenvat is not admissible. If it is for repair of your asset, credit is admissible.

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Parihar Gopal (Corporate Taxation ) (392 Points)
Replied 02 November 2012

Please mention ur Business - activity & the services which u received ( regarding the above question)

CA.Varalakshmi.M (Manager-Finance) (482 Points)
Replied 02 November 2012

Hello Subramani,

When u r paying service tax as service receiver under partial reverse charge mechanism ,u need to pay that service tax from ur pocket ,u cant utilise the existing CENVAT credit availble to pay it.

But once u pay it u can avail it as CENVAT credit as input service.