Reverse charge mechanism- director payment

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A pvt ltd co has to pay consultancy fess to non executive director, acc to Service Tax rules Reverse Charge Mechanism is applicable. The company will pay 100% Service Tax @ 12.36%.

My Question is, can the company avail the service tax credit for the 100% tax amount paid. 

Replies (2)

Yes, cenvat credit can be availed by a manufacturing company or a company providing output service.

Consultancy Fees can be Taken as a input of Service Tax


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