TaxTMI 
TaxTMI 
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.
Cenvat credit adjustment of Service Tax.
14 Apr 2015 
1 Reply 
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Reverse charge liability for services must be discharged in cash, not adjusted against Cenvat credit.
Service tax payable under the reverse charge mechanism for inward/outward transportation, security services and work contract services must be paid in cash and cannot be adjusted against Cenvat credit, pursuant to the explanation inserted in the relevant rule that mandates cash deposit for reverse charge liabilities. (AI Summary)
Service tax payable under the reverse charge mechanism for inward/outward transportation, security services and work contract services must be paid in cash and cannot be adjusted against Cenvat credit, pursuant to the explanation inserted in the relevant rule that mandates cash deposit for reverse charge liabilities. (AI Summary)