Reverse charge mechanism

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2016 good morning experts............
my query is......
whether service receivers who are liable to pay service tax under reverse charge mechanism are eligible to claim cenvat credit??????

Ganeshbabu K

Ganeshbabu K (Expert)
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28 January 2016 Yes they can claim input on payment of servicetax via GAR7 challan.if it is his eligible input service

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2016 but as per sec 2(P) of CCR rules 2004 , services on which full reverse charge is applicable are not covered by the term " output services " .
And credit can only be availed on output services...............

please answer in response to above statement

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Ganeshbabu K

Ganeshbabu K (Expert)
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29 January 2016 Rule 2[p] given by you is correct.Under reversecharge credit is availed after date of remittance of tax,.on basis of GAR7.
So you can take credit,
refer technical guide on cenvat credit for your reference,..refer 61 page

http://idtc.icai.org/download/CENVAT-Credit.pdf

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Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2016 Thank you so much sir.............