Cenvat credit availability to service provider

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 December 2013 Sir,
Please help me in following case

I am a service provider
I have input CENVAT credit of 12000/- Rs.
I have provide a service which fall under reverse charge mechanism of RS 1,00,000/-. on which i am liable to pay 4944/- Rs.
can i utilize CENVAT Credit for this liability and claim balance 7056/- (12000-4944) as refund

@VaibhavJ

@VaibhavJ (Expert)
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21 December 2013 Hi

No, under RCM, liability to service tax needs to be paid in cash. No cenvat credit can be utilised to pay same.

Thanks//VaibhavJ