28 January 2016
good morning experts............ my query is...... whether service receivers who are liable to pay service tax under reverse charge mechanism are eligible to claim cenvat credit??????
28 January 2016
Yes they can claim input on payment of servicetax via GAR7 challan.if it is his eligible input service
Querist :
Anonymous
Querist :
Anonymous
(Querist)
28 January 2016
but as per sec 2(P) of CCR rules 2004 , services on which full reverse charge is applicable are not covered by the term " output services " . And credit can only be availed on output services...............
29 January 2016
Rule 2[p] given by you is correct.Under reversecharge credit is availed after date of remittance of tax,.on basis of GAR7. So you can take credit, refer technical guide on cenvat credit for your reference,..refer 61 page