Cenvat credit availment

This query is : Resolved

nidhi jain (Querist)
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02 January 2014 Is it possible to take credit of those services under which service tax is payable under reverse charge mechanism. Also is it necessary that input service should be related or directly connected with our output service. Our company provides business management consultancy service and for general administrative office maintainance purpose hiring the housekeeping services. whether housekeeping service credit can be taken?

harish

harish (Expert)
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02 January 2014 If you are paying Service tax on input service & this input service is attributable to taxable output service. You can avail the tax credit. Reverse charge mechanism is the mode to pay service to exchequer. Hence, this will not affect tax credit availment.