Cenvat credit on reverse charge for rent a cab service

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2016 Our Company using a Cab for official use and pay monthly charges on actual km travelled. We also pay service tax as Service recipient ( 50%) and rest 50% paid by Service provider.

As service recipient can we take cenvat of service tax paid by us ( 50%) under Notification no. 26/2012.

Please suggest.

Riddhi Kadhiwala

Riddhi Kadhiwala (Expert)
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22 December 2016 No.. Company cant take CENVAT credit in Full or partial Reverse charge Mechanism. w.e.f. 01.07.12, an ‘explanation’ has been added to Rule 3(4) of the Cenvat Credit Rules which provide that cenvat credit cannot be used for payment of service tax in respect of services where the person liable to pay tax is the service recipient.

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2016 I am asking Can I take Cenvat of Service tax paid as service recipient for Rent Cab service.

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Riddhi Kadhiwala

Riddhi Kadhiwala (Expert)
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22 December 2016 No.. You cant take credit of service tax paid by you.

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2016 Under which rule or notification