Cenvat credit of st paid under rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 December 2015 Can we take CENVAT credit of Service tax paid on Manpower Services, Rent a Cab and Sitting fee of Directors under Reverse Charge Mechanism?

Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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01 December 2015 The Service Recipient can avail of Input Credit on duty paid under RCM.

The relevant input document for availing CENVAT Credit under RCM is the GAR - 7 Challan and not the invoice of the service provider.

All RCM charges have to be paid in cash and no adjustment can be made agains Input credits available.

As per the provisions currently in force duty paid by recipients of Rent - a - Cab services are not Cenvatable and no credit can be availed against such duty paid.

The CENVAT credit available under Manpower Services including Sitting Fees of Directors can be set off against any liablity for output tax payable.

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