03 January 2014
Clarify me with regard to use of cenvat credit in payment of service tax liability under reverse charge by recipient of taxable service with abatement.
you get cenvat credit benefit both amount, which provider is paid service tax, and receiver is paid direct department, bot amount you get cenvat credit
03 January 2014
Sir The service receiver liable to pay service tax under reverse charge cannot use the cenvat credit for paying the same.He has to pay the servic tax in cash Explantion to subrule 4 of Rule3 of CCR,2004. But the portion of service tax paid by service receiver under Rcm can be used as cenvat credit by the same,once its paid. reference:Subrule 7 of Rule 4 of CCR,2004.
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