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

CENVAT credit eligibility: reverse-charge service tax is claimable only if the input service is used for the output service.
CENVAT credit for service tax paid under reverse charge is permitted only where the input service is used in, or has a direct nexus with, the claimant's output services; challan is the appropriate document for reverse-charge payments. Rule 2(l) CCR 2004 governs admissibility, and specified exclusions-such as motor car hire/rent-a-cab and construction or works-contract related services-bar credit regardless of payment mechanism. Other services require assessment of their nexus with output services before credit may be availed.