cenvat on bus service

[sarat sahoo]

Sir

Cenvat credit can be allowed on bus service,renting of bus to carry student by a commercial institute or not

[KASTURI SETHI]

If you want to avail abatement, Cenvat Credit is not admissible in terms of notification no.26/12-ST dated 20.6.12 as amended from time to time. ( See Serial No.9 of Notification).

Also go through Notification No.30/12-ST dated 20.6.12 as amended for partial RCM ( See Serial No.7(a) and 7(b) of Notification).

[Ganeshan Kalyani]

Sir, also refer Cenvat credit rules. I agree with Sri Kasturi Sir's reply. Thanks.

[Rajagopalan Ranganathan]

Sir,

According to rule 2 (l) (B) of Cenvat Credit Rules, 2004 " services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle which is not a capital goods" is not 'input service'. Hence you are not eligible for credit of service tax paid on renting og bus to carry students.

[KASTURI SETHI]

I agree with the condition explained by Sh.Ranganathan, Sir..

AI Summary

Cenvat credit on bus rental services disallowed when abatement applies and motor vehicle rental isn't an input service. Cenvat credit is disallowed on bus rental services used to carry students where abatement is claimed under the service tax notifications, and renting of a motor vehicle that is not a capital good does not qualify as an input service under the Cenvat Credit Rules, 2004, thereby precluding credit of service tax paid on such rentals; partial reverse charge provisions in the notifications may impose alternative liabilities.