Cenvat Credit - Service Tax

[KIRAN KUMAR]

Dear sir,

We are paying Service tax as a service provider on 'Renting of Immovable property' and we are paying Service tax under Reverse charges mechanism also for major amount under Manpower and service tax on setting fees.

Cenvat credit can we take and adjust in Service tax

Regards,

Kiran Kumar

[DR.MARIAPPAN GOVINDARAJAN]

In my view you can take credit.

[KASTURI SETHI]

Yes. Credit can be taken. Under RCM ST has to be paid in cash and thereafter credit is to taken on the strength of challan. E- Receipt. Challan is valid doucme for avail credit.

AI Summary

Cenvat credit entitlement: tax paid under reverse charge can be claimed as input credit using the payment challan. Availability of Cenvat credit on service tax where tax under the Reverse Charge Mechanism for manpower and setup fees is paid in cash; the payment challan or e receipt issued on payment under RCM is valid documentary proof to thereafter avail and adjust credit.