Cenvat Credit on RCM Payments

[Mathurthi RamKumar]

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

AI Summary

Reverse charge mechanism: recipient must pay service tax on legal services and may claim cenvat credit after payment.
Reverse charge requires the service recipient to pay service tax on legal services received from individual advocates even without a provider invoice; a serially numbered bill, invoice or challan showing provider and recipient details, service description, value and tax payable is required. Cenvat credit on tax paid under reverse charge is allowable where the service is an input to the business and the necessary nexus and documentary evidence of tax payment (challan/GAR form) exist, with credit taken after deposit of tax in accordance with cenvat credit rules.