Cenvat Credit for the ST paid under RCM, Central Excise

[Mahendra Lakide]

Dear Sir/Madam,

whether the Service Tax paid by the Service Receiver under RCM (Ex: GTA services Received by the Manufacture of Taxable goods by the Manufacturer under Central Excise act) can avail the Cenvat credit ? if Yes what is the provision and notification no as per the Cenvat Credit Rules ?

Posts / Replies

[CS SANJAY MALHOTRA]

Dear,

Please refer to Rule 4(7) of CENVAT Credit Rules 2004, which provides for admissibility of CENVAT Credit in case of RCM.

CENVAT Credit in case of Service Tax paid under RCM is available after the Service Tax payment has been made by the Service receiver. Refer to Rule 4(7) in recently amended Notification No. 21/2014-CE(N.T) dated 11.07.14 & Notification No. 06/2015-CE(N.T) dated 01.03.2015

 

[Mahir S]

Yes sir, input service credit for the payment made under reverse charge mechanism can be availed and then utilized, as explained above.

[Mahendra Lakide]

Thank you sir