service tax paid on manpower-clarification

[Ramakrishnan Seshadri]

Dear Sir,

We are manufacture of automobile parts.

For our Vehicles drivers are hired and supplied by manpower agency.

For this service tax has been paid under rcm previously and now we are paying 100%.

Now our question is whether service tax paid on this manpower for drivers is eligible for service tax credit.

Could any one clarify.

Thanks and Regards,

S.Ramakrishnan.

AI Summary

Auto Parts Manufacturer Can Claim CENVAT Credit for Driver Services via Manpower Agency under Rule 2(l), CENVAT Credit Rules 2004. A manufacturer of automobile parts sought clarification on whether service tax paid for drivers hired through a manpower agency is eligible for service tax credit. Respondents confirmed that CENVAT credit is admissible for such services under rule 2(l) of the CENVAT Credit Rules, 2004, and can be claimed based on the tax paid under reverse charge. It was noted that the credit is available if the service has a nexus with manufacturing activities. The discussion also addressed the eligibility of credit for drivers used by company directors for business purposes.