Cenvat Credit

[varun chutani]

Weather Air Traveler agent can use Input Credit if he under composition scheme(.618 & 1.236) can he claim input credit

[Rama Krishana]

As per Rule 7 of the Service Tax Rules, 1994, the method of composition is provided for manner in which service tax is to be paid as an option.

But there is no restriction in the Rule for availing Cenvat Credit on Input services, Inputs or capital goods. Therefore you may avail the credit in normal course as per the provisions.

AI Summary

Cenvat credit eligibility: composition-scheme service providers may avail input, input service and capital goods credit under Rule 7. The composition method under the Service Tax Rules provides an alternative manner for discharging service tax but does not prohibit availing Cenvat Credit on inputs, input services or capital goods; a composition-scheme service provider may therefore claim credit in the normal course under the statutory credit provisions.