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Cenvat credit- rent a cab opearator
Dear Sir,
This refers to Cenvat Credit being availed and utilized by a Rent a Cab Operator rendering car rental services at a HOTEL TRAVEL COUNTER.
Here the Rent A Cab operator running a Travel Counter at a Hotel renders CAB services to the Hotel Guests and he does the billings to the Guests levying service tax @ 12.36% . He has registered his services under RENT A CAB operator services under SERVICE Tax Rules.
He procures Cabs from an outsourced vendor for rendering Cab services to the Hotel Guests. The Outsourced vendor charges him services tax @ 4.94 in his bill.
Here, Can our Rent A Cab Operator avail of credit of Input tax levied by his outsuorced vendor against his service tax liability ?
Please clarify.
RAJESH NAIR
Replies (2)
In respect of Reverse charge Facility whether partial or full,Cenvet credit can't be utilised for payment of service tax on such Input services.
In simple words, u are not authorised to utilise Cenvet credit for such payment of tax on such input service.
Dear Rajesh,
Cenvat credit of Service tax paid on Rent-a-cab services cannot be availed.
However if your client is providing services under Rent-a-cab services, Cenvat can be availed in respect of Rent-a-cab services for service tax paid to the outsourced cab provider.
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