Cenvat credit for service provider paying tax under rcm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2013 A company is an insurance agent and its entire income as agency commission is liable under revere charge mechanism and tax is paid by Insurance companies.

Whether my company as insurance agent would be eligible to take credit?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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18 April 2013 no you are not providing any output service.
'aisa main nahi kaanoon kahta hai'
as per defination of output service under 2(p) of ccr.
“output service” means any service provided by a provider of service located in the taxable territory but shall not include a service,-
(1) specified in section 66D of the Finance Act; or
(2) where the whole of service tax is liable to be paid by the recipient of service

from the point 2 it is clear that you are not providing the output service,
hence when no output service no input service credit. rule 2(l) of ccr.