Dear 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.
CAclubindia
