Dear Sir,
We manufactuer under taking man power supply and we are paid labour contract charges with service tax to labour contrctor and taken credit of service tax paid.
But the labour contractor has not paid the service tax amount to dept and our range demanding service tax from us.
Reply
SUnder
A person can claim cenvat credit on the basis of eligible documents as defined under Rule 9 of the CENVAT Credit Rules 2004.
If the credit has been availed on the basis of eligible documents, department cannot ask for reversal of credit. The action lies against manpower supply agency and not against your company
Dinesh Agrawal,
Grad CWA,ACA
Khaitan & Co
Mumbai
9969375261
CAclubindia
