Input tax credit under reverse charge mechanism

Sasidhar Reddy (article trainee) (35 Points)

30 July 2015  

Hi Sir,

I had a small doubt on RCM 

Ours a Construction Company, we are receiving services such  as

1.works contract

2.Man Power Supply

and we are liable to pay Service tax under RCM. 

Here my doubt is whether can we claim Input Credit of Amount which we are paying under RCM to Department ?

Let me give an Example.

We received a service of man power supply for July, for which invoice raised for Rs.100 and we paid 100(1+14%) ie.114 out of which 100 is credited to party and 14 is paid to Department. can  we take credit of Rs.14 paid to department ? If so when?

Thanks & Regards

sasidhar. V