Regarding cenvat credit on service tax on rent a cab

[Rajeev Khulbe]

Good morning to all my great experts.

Every time when I face any problem.then you all my great experts help me. But yesterday experience I want to share with you. Yesterday our financial excise and service tax audit.then in one point more argument between audit team and us .that point was cenvat credit on rent a cab.auditor told us that why are you taking cenvat credit on rent a cab then we told us as per notification no.08/2014 service tax we can take cenvat credit on rent a cab because as per notification if we will DEPOSIT SERVICE TAX @40℅ on abated value on rent a cab then we can take credit on it. But Auditor told us that this rule for SERVICE provider not service receiver . He told that if service provider is private limited company then he will deposit 40℅ service tax not service receiver not deposit service tax.sir I want to know that auditor was right .can we not claim cenvat credit on rent a cab.

Thanks

Rajiv

Nainital

AI Summary

Clarification on CENVAT credit eligibility for service tax on rented cabs: service receivers may claim under specific conditions. A discussion on the eligibility of CENVAT credit for service tax on rented cabs involves a query about whether a service receiver can claim such credit. The auditor argued that CENVAT credit is not applicable to service receivers based on Notification No. 08/2014, which applies to service providers. However, responses clarified that under certain conditions, such as paying service tax on an abated value, service receivers can claim credit. The debate also touches on the reverse charge mechanism (RCM) and the sharing of service tax liability between service providers and receivers, with specific conditions outlined in various notifications.