Input Credit of Service tax with effect from 1st July 2012

[A Wilson]

Dear Experts,

We are liable to pay service tax under reverse charge for

Legal Services by Advocates,

Motor  Car Hire Charges

Manpower Supply services

Freight Payments

Service portion in a Work Contract Service

Import of services - Professional - Financial Advice Services

After paying the service tax under Reverse Charge. Shall we eligible to take Input Credit of the above service tax paid in our Output Services Like Commission Agent for goods supply, Recovery of Freight, Recovery of Addl Storage Charges

Pls give your Inputs on this.,

AI Summary

Eligibility of Input Credit Under Reverse Charge: Key Services and Exclusions Explained in CENVAT Credit Rules, 2004 A query was raised regarding the eligibility of input credit for service tax paid under the reverse charge mechanism for various services, including legal services, motor car hire, manpower supply, freight payments, work contract services, and import of professional services. Respondents clarified that under the CENVAT Credit Rules, 2004, input credit can be claimed for services directly or indirectly related to output services. However, certain exclusions apply, such as motor car hire and construction services. The eligibility depends on the nexus between the input and output services, and the appropriate documentation like challans is required for claiming credit.