CENVAT Credit on Work Contract service tax paid under Reverse Charge Mech.

[Rakesh K Paliwal]

Dear All,

I want suggestion on the above subject matter that , as we are paying service tax 50 percent on work contract service on various valuation like 40 percent , 70 percent and 60 percent of value of bills  under reverse charge, so can we take CENVAT on which category of payments agains after payments of ST.

Please advise, and give referance of that in rules/notification.

 

Regards

Rakesh K Paliwal

 

AI Summary

Eligibility of CENVAT Credit Claim on Service Tax under Reverse Charge for Work Contract Services Discussed; Rule 9 Referenced. A participant inquired about the eligibility of claiming CENVAT credit on service tax paid under the reverse charge mechanism for work contract services, with varying valuation percentages. A respondent advised referencing the CENVAT Credit Rules (CCR), 2004, specifically Rule 9, which outlines document requirements for credit claims. They explained that credit can be claimed based on tax payment challans and invoices, with conditions on payment timelines. Another participant highlighted restrictions on CENVAT credit for new construction work contracts, while a third noted that credit is only applicable if the output service is also a work contract or construction service.