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

Reverse charge service tax: rent a cab tax paid by recipient not eligible for CENVAT credit claim Whether a service recipient may claim CENVAT credit for service tax paid under the reverse charge mechanism on rent a cab services: rent a cab is specifically excluded from creditable input services, so service tax paid by the recipient under reverse charge on rent a cab cannot be taken as CENVAT credit.