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 for Reverse Charge Mechanism Confirmed, Must Be Claimed Within One Year of Tax Payment. A service receiver in a works contract with a company inquired whether they could avail Cenvat credit for the service tax paid under the Reverse Charge Mechanism for the year 2014-15. A respondent confirmed that the credit could be taken, provided it is claimed within one year from the date of tax payment under RCM. Another respondent questioned whether the one-year time limit applies to RCM cases as well.