TaxTMI 
TaxTMI 
I would like to know whether we can avail Cenvat Credit of Service Tax against Works Contact (Manufacturing Unit) paid by recipient as well as provider. Please inform me at earliest.
With thanks
Samik
Reverse Mechanism
13 Nov 2014 
2 Replies 
1167 Views Asked by
Cenvat credit exclusion for works contracts limits input service credit; RCM-paid service tax may nonetheless be claimed.
Input service exclusion removes the service portion of works contracts and construction services from Cenvat credit when used for construction or execution of buildings or for laying foundations or support structures for capital goods, except where the activity constitutes specified services. Separately, credit of service tax paid under the reverse charge mechanism may be availed by the person who pays the tax, whether provider or receiver. (AI Summary)
Input service exclusion removes the service portion of works contracts and construction services from Cenvat credit when used for construction or execution of buildings or for laying foundations or support structures for capital goods, except where the activity constitutes specified services. Separately, credit of service tax paid under the reverse charge mechanism may be availed by the person who pays the tax, whether provider or receiver. (AI Summary)