05 May 2010
My company is takin the service of rent a cab. the cab rent company is taking abatement of 60% to pay its service tax and charging the s.tax on rest 40% from us. can we take the CENVAT credit on the s.tax paid by us in this respect? or will we be disallowed CENVAT credit on the ground that the provider of service has taken abatement?
05 May 2010
Rent a cab service has been held to be an input service by a plethora of judgment. Abetment at the service provider's end is not a bar against availment of credit.