CENVAT CREDIT

[Rajeev Verma]

SIR I AM WORKING IN LIMITED COMPANY AND IN MY COMPANY HAVING NO OUT PUT SERVICE BUT PAYING SERVICE TAX UNDER REVERSE CHARGES MECHANISM AND OTHER INPUT SERVICES . WHETHER I CAN UTILIZE THE CENVAT PAID ON OTHER INPUT SERVICES AGAINST PAYMENT UNDER REVERSE CHARGES MECHANISM.

AI Summary

CENVAT Credit Not Usable for Reverse Charge Service Tax; Cash Payment Required; Service Credit Limited to Certain Contracts An individual working at a company without output services inquired about utilizing CENVAT credit for service tax paid under the reverse charge mechanism. Responses indicated that CENVAT credit cannot be used for paying service tax under reverse charge, which must be paid in cash. It was noted that manufacturers might use CENVAT credit for excise duty, but traders cannot. Additionally, service tax credit is not available for services like rent-a-cab, but it may be availed for works contracts related to maintenance of buildings or machinery.