TaxTMI 
TaxTMI 
Dear experts,
Can anybody describe in detail whether in any case payment under RCM & against declared services can be made from Cenvat Credit ?
STax payment from CENVAT / Cash
29 Jul 2016 
6 Replies 
4414 Views Asked by
Reverse charge on services must be paid in cash; Cenvat credit cannot discharge reverse charge liabilities.
Service tax liabilities under the Reverse Charge mechanism and declared services where the whole tax is payable by the recipient must be paid by cash (including e-payment); such recipient-liable services are excluded from the definition of "output service" under the Cenvat Credit Rules, and therefore Cenvat credit cannot be used to discharge those reverse charge liabilities. (AI Summary)
Service tax liabilities under the Reverse Charge mechanism and declared services where the whole tax is payable by the recipient must be paid by cash (including e-payment); such recipient-liable services are excluded from the definition of "output service" under the Cenvat Credit Rules, and therefore Cenvat credit cannot be used to discharge those reverse charge liabilities. (AI Summary)