reverse charge payment of service tax - eligibility of cenvat credit

[Krishnan Vasudevachary]

After introduction of reverse charge service tax  liability from 1st July 2012 on the services like Rent a cab, the service tax discharged on the service receiver bill, whether the service receiver is eligible to avail cenvat credit on the service tax paid?

[YAGAY andSUN]

No, on rent a cab, you can't avail the CENVAT credit as this service is specifically mentioned in the definition of input services for purpose of not availing the CENVAT credit.

AI Summary

CENVAT Credit Not Available for 'Rent a Cab' Services Under Reverse Charge Mechanism per Definition of Input Services A query was raised regarding the eligibility of availing CENVAT credit on service tax paid under the reverse charge mechanism, specifically for services like 'Rent a Cab' introduced from July 1, 2012. The response clarified that CENVAT credit cannot be availed for 'Rent a Cab' services as it is explicitly excluded in the definition of input services for CENVAT credit purposes.