S.Tax Input Credit under reverse charges Machenism

[RAM SHARMA]

Dear Experts,

We are in Taxable Terrotory and  receiving services from non taxable territory like J&K and liable to pay service tax under reverse charge machenism. Can we take input credit after payment of service tax.

Thanks

AI Summary

Eligibility to Claim Input Credit for Service Tax Paid under Reverse Charge Explained: Cenvat Credit Rule, 2004 A participant inquired about the eligibility to claim input credit for service tax paid under the reverse charge mechanism when receiving services from a non-taxable territory. An expert responded, referencing the Cenvat Credit Rule, 2004, which stipulates that CENVAT credit is permissible only after the payment of service tax is made. The service receiver can claim the credit based on the payment challan.