CENVAT CREDIT IN RENT A CAB

[Rajeev Khulbe]

GOOD MORNING TO ALL EXPERT,

WE ARE A EXCISABLE UNIT. WE HIRED BUSES FOR OUR EMPLOYEE UNDER RENT A CAB. WE DEPOSIT 40% SERVICE TAX UNDER WITH ABATEMENT. SIR MY MONTHLY PAYMENT OF SERVICE TAX UNDER RENT A CAB APPROX 20000 TO 30000 K. SIR CAN WE TAKE CENVAT CREDIT UNDER RENT A CAB. THANKS IN ADVANCE FOR YOUR QUICK REPLY

AI Summary

Eligibility of CENVAT Credit for Service Tax on Bus Hire under 'Rent a Cab' Service Sparks Debate An excisable unit inquired about the eligibility for CENVAT credit on service tax paid for hiring buses under the 'rent a cab' service. Various experts responded, highlighting differing interpretations. Some argued that CENVAT credit is not permissible due to the abated value of service tax, while others cited a Karnataka High Court ruling allowing such credit for employee transportation services. Notification No. 08/2014-ST was discussed, indicating conditions under which credit might be claimed. The debate also touched on the classification of vehicles and the applicability of input service definitions under CENVAT Credit Rules 2004.