Service provided by Directors under partial reverse charge

[Guru Murthy]

Dear sir,

As per Notn No 45/2012-ST dated 07.08.2012 has amended the Not No 30/2012-ST dated 20.06.2012, the receipent of service has to pay service tax for the services rendered by the director. My query is that after payment of the Service tax, can the company avail cenvat credit ?

AI Summary

Reverse charge on director services: company may claim cenvat credit subject to input service eligibility and apportionment.
Notn No 45/2012-ST makes recipients liable to pay service tax on director-provided services under reverse charge; cenvat credit on such tax is available only if the services qualify as input service under the Cenvat Credit Rules and subject to the usual eligibility, documentation and apportionment restrictions where both taxable and exempt outputs are supplied. Remuneration constituting employment income is excluded from service tax and not creditable.