Cenvat credit availment on rent a cab service

[Asked by 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

Cenvat credit on rent a cab services depends on abatement, provider status, and same line business exception.
CENVAT credit on rent a cab services is generally excluded where the service is defined outside Input Service and where abatement is availed; credit is available if the provider does not avail abatement and charges tax. An amendment creates an exception allowing full credit when the service is received from a person in the same line of business (e.g., a sub contractor), while where tax is paid on full value (no abatement) credit is restricted to 40% of the input service credit. Reverse charge payments for rent a cab are not eligible for credit.