TaxTMI 
TaxTMI 
Percentage of Service Tax payble by the person receiving the Service can take the credit on it.
Credit taken on 75% in labor contractor
17 Jul 2012 
2 Replies 
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Cenvat credit entitlement clarified: recipient may claim service tax credit on invoice or challan depending on charge mechanism.
Post 1.7.2012, under the Cenvat Credit framework the service recipient may claim credit of tax paid by the service provider on the basis of a valid invoice, subject to conditions in the rules; where tax is paid by the recipient under partial reverse charge, credit is allowable on the basis of the tax payment challan, subject to those rules. A compliance question concerns whether the proviso requiring payment equal to duty on transaction value applies after ten years or within ten years from taking Cenvat credit. (AI Summary)
Post 1.7.2012, under the Cenvat Credit framework the service recipient may claim credit of tax paid by the service provider on the basis of a valid invoice, subject to conditions in the rules; where tax is paid by the recipient under partial reverse charge, credit is allowable on the basis of the tax payment challan, subject to those rules. A compliance question concerns whether the proviso requiring payment equal to duty on transaction value applies after ten years or within ten years from taking Cenvat credit. (AI Summary)