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Cenvat credit under reverse charge

Ram kr. (Buisness) (883 Points)

22 May 2013

Dear Experts,

We are manufacturer company and pay service tax under reverese charge machenism for following services.

1.Renting of cab 2.manpower consuting services 3. legal services 4. intelectual property write(IPR) 5. Work contract services.6. Security services.

Can we take cenvat credit of all services under reverese charge machenism.

Thanks

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5 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 22 May 2013

It is assumed that the services are liable under reverse charge. The restriction in defintion of input services maybe perused. Cab, construction may not be available. The others are available as loing as you are provding services which are taxable or manufacturing goods liableto CED

3 Like

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CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 22 May 2013

yes, cenvat can be availed by the recepient but canvat credit cannot be utlised for paying ST

1 Like

Arun Kumar Singh (GST Advocate) (15203 Points)
Replied 22 May 2013

Cenvat credit is available on input services. Manufacturer as well as service provider will be eligible to get Cenvat credit of input services. Input service where the service tax is paid on reverse chage by the recipient of the service, the cenvat credit in respect of such input service shall be allowed on or after the day on which payment is made of the value of input service and the service tax paid or payable as indicated in invoice, bill or as the case may be, challan referred to in rule 9.

2 Like

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 22 May 2013

Originally posted by : Arun Kumar Singh
	Cenvat credit is available on input services. Manufacturer as well as service provider will be eligible to get Cenvat credit of input services. Input service where the service tax is paid on reverse chage by the recipient of the service, the cenvat credit in respect of such input service shall be allowed on or after the day on which payment is made of the value of input service and the service tax paid or payable as indicated in invoice, bill or as the case may be, challan referred to in rule 9.

Yes, credit of ST paid on reverse chg can be taken but only on payment of such ST.

YASH PUROHIT (AHMEDABAD) (36 Points)
Replied 18 March 2015

Dear expert , i would like to know the answer in the following issue.

We are paying the membership fees to the Association registered, established and having a operational affairs in the foreign country. so i would like to ask that whether s.tax would be applicable as per RCM in case when services are received by association situated outside the india at the time of payment of membership fees ?

and what if, when the descripttion of service which assessee is receiving from foreign entity are as such is exempted via notification in india ? e.g. Assessee received x type of services from foreign and the same x type of services is actully exempt if provided in india , still RCM applies ???