Cenvat credit- rent a cab opearator

RAJESH NAIR (ACCOUNTS MANAGER) (45 Points)

07 December 2013  
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