Cenvat credit availment on rent a cab service

[Guest]

Dear Sir, We as a input service distributor of a mfg co are paying service tax on rent a cab service on 40% of value , So can we avail cenvat credit on such service tax paid under rcm.pls explain thanks and regards

AI Summary

Can CENVAT credit be claimed on rent-a-cab services? Rule clarification on abatement and eligibility. A discussion on a forum addresses the eligibility of availing CENVAT credit on service tax paid for rent-a-cab services. Initially, it was clarified that CENVAT credit could not be availed for such services due to restrictions in the CENVAT Credit Rules, 2004. However, amendments allowed credit if the services were provided by someone in the same business line, with restrictions on credit eligibility based on whether abatement was availed. Participants debated the interpretation of rules and amendments, emphasizing that credit is not available if abatement is claimed, but is possible if full tax is paid without abatement.