aishwarya s raghavan (student) (224 Points)
09 December 2013Dear All!
Please clarify me in this regard. A Pvt Ltd is engaged in O&M business. For travelling to the sites, the company hires motor vehicle from B Co (individual/firm). B Co is not registered with service tax. Since, this falls under reverse charge mechanism, A Pvt Ltd pays 40% of service tax (its portion of 12.36%) and avails credit.
Is the company eligible for cenvat credit?
Kindly clarify with the relevant provisions.
CA Kanagaraj R
(CA, CS & CWA)
(86 Points)
Replied 09 December 2013
Cenvat credit cannot be availed on car hire charges since there is a specific restriction in CCR. Refer Rule 2(l) - input services defn.
Revert for further clarification if any.
Rgds,
CA Kanagaraj R
aishwarya s raghavan
(student)
(224 Points)
Replied 09 December 2013
Could you please quote the text of such rule
CAclubindia
