R/sir,
For Renta CAB Operator service under Reverse Charge Mechanism having 2 options;
they are :
1) without abatement , Service Provider has to pay ST on 60 percent value of services and Recepient has to pay ST for the rest of 40 percent value.
2) with abatement of 60 percent Service Receiver has to pay ST on 40 percent value.
Only in cases where the Service Provider is an individual, HUF, partnership firm, AOP or Trust.
My question :
Can we take cenvat credit , if payment under reverse charge without abatement option selected .
For Example:
Service Provider:
Rs.100 Assessable value
Service Tax charge on 60 percent (Service Receiver) – 12.36 percent = Rs.7.42
TOTAL Bill Amount: Rs.117.42
Service Receiver:
Pay Service Tax on 40 percent on Assessable Value Rs.100 i.e. Rs.4.94
Is it Cenvat Credit eligible Rs.4.94 as input service or not?
If service provider ( Indivisual , properitor , AOP ) not deposit tax any liability in future on company ?
Please suggest.
Thanks and Regards,
SNEHAL SHAH