whether service tax paid under reverse tax machanism are eligille for cenvat credit .
if answer is yes that whem after the payment of service tax under reverse tax
CA HARI SHANKAR KUMAR (CA Job) (46 Points)
02 April 2013whether service tax paid under reverse tax machanism are eligille for cenvat credit .
if answer is yes that whem after the payment of service tax under reverse tax
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 02 April 2013
Yes, after the payment of service tax to the department as well as the payment of invoice to the Vendor{ Provisio to Rule 4(7) of CCR,2004}
Subject to the condition that the said service fall under the deifnition of input service as defined under Rule 2(l) of CCR,2004
For example, in case of reverse charge under rent-a-cab by service receiver, no CENVAT shall be allowed for the service tax amount paid under reverse charge(due to the specific exclusion made under the definition of Input service)
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