Availment of cenvat credit

This query is : Resolved

aman gupta (Querist)
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20 March 2016 Dear Expert,

My issue is as follow:
Company is providing service related to restaurant service and company is also hiring a bus for transportation of employee from specified location to company HO. as this is specified service under service tax act company is paying service tax 40% of value by applying notification no. 26/2012.
So Can company avail cenvet credit on service tax paid on partial reverse charge ?.

praveen

praveen (Expert)
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20 March 2016 Hello,

In my opinion you can claim the entire amount of tax paid on partial reverse charge. however, the service tax department might dispute and limit the deduction to 40% since you are paying service tax only on 40% of the value of the sale. This is a case of dispute but surely you should be able to win.

aman gupta

aman gupta (Querist)
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20 March 2016 Dear Expert,

Thanks for your reply, but when i want to avail cenvat credit on any service i have to follow rules of cenvet credit rule 2004 , and
As per definiation of input service of cenvet credit rule 2004 cenvet credit can't avail for motor vichele which is not capital goods.and
As per Definaton of Capital goods of Cenvet credit rule 2004 motor vichele fall under 8702,8703,8703 no credit avail.

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praveen

praveen (Expert)
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20 March 2016 You cannot claim "input" but can claim "input service". Input means the central excise you pay when you purchase any goods. Input service is the service tax. Which you can claim.