26 February 2009
whether service tax paid on import of service are allowed for taken credit as per CCR. please analies the rule 5 of Taxation of Services (Provided from Outside India and Received in India) Rules, 2006
06 April 2009
What Rule 5 of (Provided from Outside India and Received in India) Rules, 2006 says is that the services for which one made liable for payment under these rules should not be treated as ones output service which implies that the payment of such service tax has to be made in cash and cannot be paid through utilisation of CENVAT credit.
However, CENVAT credit of such service tax payment made under these rules can be taken if it qualifies as your input service.