TaxTMI 
TaxTMI 
Sir
Cenvat credit can be allowed on bus service,renting of bus to carry student by a commercial institute or not
cenvat on bus service
02 Aug 2016 
4 Replies 
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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. (AI Summary)
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. (AI Summary)