Under Works Contract, the service receiver can take creidt of S.tax paid

[Anil Kumar]

Dear Sir,

We have a works order contract with an x company, we come under the service receiver category and as per the Reverse charge mechanism We paid the necessary service tax for the year 2014-15, can we avail the Cenvat credit of the amount paid.

Regards

Aneel Kumar M

[Rajagopalan Ranganathan]

Sir,

The answer is "yes" provided you take the credit within one year from date of payment of the tax under RCM.

[DR.MARIAPPAN GOVINDARAJAN]

Sir, whether one year time limit is applicable to RCM cases also?

AI Summary

Cenvat credit eligibility after reverse charge payment requires timely claim under the prescribed time limit. A service recipient under a works contract who pays service tax under the reverse charge mechanism may avail Cenvat credit for the tax paid, provided the credit is taken within the one-year time limit from the date of payment of tax under RCM; questions remain about the general applicability of that one-year limitation to RCM cases.