Vces

Dear Friends,

My company wants to pay service tax which was defaulted earlier for import of service under reverse charge mechanism, the same is covered under in the VCES-2013,

My point is can my company take CENVAT CREDIT of the duty paid under VCES scheme.

Please do reply with your inputs on the same.

regards

Avinash Patnana

Replies (1)

Pls refer to the below excerpt from FAQ published by CBEC.

 

Q22. (a) Whether the tax dues amount paid under VCES

would be eligible as cenvat credit to the recipient of

service under a supplementary invoice?

(b) Whether cenvat credit would be admissible to the

person who pays tax dues under VCES as service

recipient under reverse charge mechanism?

Rule 6(2) of the Service Tax Voluntary Compliance

Encouragement Rules, 2013, prescribes that cenvat

credit cannot be utilized for payment of tax dues under

the Scheme. Except this condition, all issues relating to

admissibility of cenvat credit are to be determined in terms

of the provisions of the Cenvat Credit Rules.

As regards admissibility of cenvat credit in situations covered

under part (a) and (b), attention is invited to rule 9(1)(bb)

and 9(1)(e) respectively of the Cenvat Credit Rules.

Therefore, it is quite evident that for reverse charge cases, cenvat is eligible under rule 9(1)(e).

 

 

 

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