cenvat reverse charge

[satbir singhwahi]

limited company receiving bill for security services from partnership firm. As per reverse charge the company will pay 75% service tax and 25% will be charged by partnership firm in the bill.Whether cenvat can be availed by the company on this bill of security services .

AI Summary

Company Can Claim CENVAT Credit on Security Services; 25% on Invoice, 75% After Government Payment, if Manufacturing-Related A limited company receiving security services from a partnership firm is subject to a reverse charge mechanism, where the company pays 75% of the service tax, and the firm charges 25%. The company inquires if it can avail CENVAT credit on this bill. Responses indicate that credit is available for both portions: 25% upon invoice receipt and 75% post-payment to the government and vendor. However, if services are unrelated to manufacturing, CENVAT credit is unavailable. The 75% paid under reverse charge must be reported in ST-3 and can be credited in the subsequent month after payment.