Rcm-rent a cab

40% (i.e. 6%) liability on SR under RCM (with abatement)

And what about CENVAT credit for SR?

 9            Renting of motor cab.                   40 %

(i) CENVAT credit on inputs and capital goods, used for providing the taxable service, has not been taken under the provisions of the CENVAT Credit Rules, 2004;

(ii) CENVAT credit on input service of renting of motor cab has been taken under the provisions of the CENVAT Credit Rules, 2004, in the following manner:

(a) Full CENVAT credit of such input service received from a person who is paying service tax on forty percent of the value; or

(b) Up to forty percent CENVAT credit of such input service received from a person who is paying service tax on full value;

(iii) CENVAT credit on input services other than those specified in (ii) above, has not been taken under the provisions of the CENVAT Credit Rules, 2004.

This above rule is applicable to SP but what is provisions for  SR, who is paying ST on 40% of value? Is he allow CENVAT credit for the same?

If SR is not in same line of business, it cannot take Cenvat Credit, for Rent a Cab input Service.

Thank You Sir.

Most welcome.