Cenvat credit adjustment of Service Tax.

[Samik Chaudhuri]

Sir

We are manufacturing Co. Can Service Tax payable amount for Inward/Outward Transportation, Security Service and Work Contract service be adjusted with Service Tax Cenvat credit ? Please suggest me.

With thanks and regards

Samik Chaudhuri.

[PAWAN KUMAR]

Dear Sir,

Service tax payable under reverse charge mechanism (Whether partial or full) is required to be deposited through Cash. please read the explanation inserted from 01.07.2012 after rule 3(4) for the same.

AI Summary

Service Tax for Transport, Security, and Work Contracts Must Be Paid in Cash, Not with Cenvat Credit, per Rule 3(4). A manufacturing company inquired whether the Service Tax payable for inward/outward transportation, security services, and work contract services could be adjusted with Service Tax Cenvat credit. The response clarified that under the reverse charge mechanism, whether partial or full, the service tax must be deposited in cash, referencing an explanation added from July 1, 2012, after rule 3(4).