Dear All,
Greetings for weekend... Kindly clarify me can we take cenvat credit on Reverse Charge Mecanisam payments?. Our company getting service from advocate and paying charges deducting TDS.(its around ₹ 1,00,000/- only) He is individual and no invoice for the service.
I want to now if we are liable to pay service tax how much % will be paid and eligible for cenvat credit or not? If eligible any invoice required for that?
Thanks in Advance.
Reg
M.RamKumar
Eligibility for CENVAT Credit on Service Tax Under RCM Requires Valid Documentation per CENVAT Credit Rules, 2004. A query was raised regarding the eligibility to claim CENVAT credit on service tax paid under the Reverse Charge Mechanism (RCM) for services received from an advocate without an invoice. Respondents clarified that service tax must be paid even without an invoice, and CENVAT credit can be claimed following the CENVAT Credit Rules, 2004. It was emphasized that a valid document, such as an invoice or challan, is necessary for availing credit. The service tax rate applicable is 12.36%, and documentation must comply with Service Tax Rules, 1995, and Notification 30/2012-ST for RCM. (AI Summary)
TaxTMI 
TaxTMI 
