ELGIBILITY OF CENVAT FOR SERVICE TAX PAID UNDER RCM

[Ramachandran Chandru]

Would like to know whether CENVAT credit is eligible for service tax paid under RCM category. If so, is there any time bar for taking credit of tax paid, like one year period applicable for Non-RCM category. Also, any time bar is applicable for payment of service tax under RCM category. In the event of service tax paid, without interest, after due date, whether credit can be taken for the same under RCM. Please clarify.

AI Summary

CENVAT credit for RCM-paid service tax allowed after government payment; time-limit contested, payment timing and interest issues noted.
CENVAT credit is available for service tax paid under the reverse charge mechanism only after actual payment to the government. There is a split on temporal limitation: some reject a time bar while others rely on time bar provisions and treat the challan as a qualifying document, supporting a one year limitation as per administrative guidance. RCM tax must be paid by the prescribed monthly due date, and payment without interest does not automatically bar credit though interest non payment may invite departmental action.