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Cenvat credit on st paid under reverse charge

PRANAY JAIN (Director) (248 Points)

24 April 2016

Can one take cenvat credit of service tax paid under reverse charge mechanism

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7 Replies

Prashant Hegde (Professional) (262 Points)
Replied 24 April 2016

That depends on RCM on which type service.
In most of the cases one can take input after the payment of the same.

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PRANAY JAIN (Director) (248 Points)
Replied 24 April 2016

Can credit be claimed for Service Tax paid under RCM on legal fee to a lawyer.

Suppose on legal fees of Rs.5000, ST paid Rs.725.00, so can I use this Rs.725 as cenvat credit for payment of ST on any other service.

Devi Singh Rathore (Chartered Accountants) (45 Points)
Replied 24 April 2016

Yes, One taken Take Cenvat Credit of ST Paid on eligible Input Services. RCM is only method of payment. It is as like ST paid on bill of some vender/Service Provider. The basis document for taking Cenvat will be Challan.

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Prashant Hegde (Professional) (262 Points)
Replied 24 April 2016

Yes, you can take input. You have to pay 725 but you can take on

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Prashant Hegde (Professional) (262 Points)
Replied 24 April 2016

input only rs.700. You can't take SBC input.

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Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 25 April 2016

Prashant is correct. The bar/ restriction are in realtion to cab rent, some part of works contract/ construction for which you need to see the defintion of input service.

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Biswajit Mishra (SENIOR AUDIT MANAGER) (27 Points)
Replied 19 December 2018

can we avail cenvat credit on service tax paid on rcm basis for GTA services and which can be utlize for payment of service tax on business support services