Cenvat Credit in case of Reverse Charge Mechanism

[Dhirendra Srivastava]

Dear Professional colleagues, My Query is regarding Payment of Service Tax Under Reverse Chage Method. I can understand that Service in relation to which Service Tax under reverse charge is paid cannot be treated as output service, But can we treat it as input service. For examsple can we use the Service Tax paid under reverse charge for payment of Service Tax? Excise Duty.

AI Summary

Cenvat credit under reverse charge qualifies as input service credit when Cenvat Credit Rules conditions are met.
Service tax discharged by the recipient under the Reverse Charge Mechanism is treated as equivalent to tax paid in the ordinary course and, subject to compliance with the conditions and restrictions in the Cenvat Credit Rules, qualifies as input service credit and may be availed and utilised in accordance with the Rules' procedural and substantive limits.