Cenvat credit and abatement simultaneously

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Querist : Anonymous

Querist : Anonymous (Querist)

13 November 2015 XYZ is a builder who has let out work on sub contract basis to another contractor. The sub contractor is charging service tax. XYZ wants to claim abatement and wants to take cenvat credit of tax paid to the sub contractor. Is it Possible?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 November 2015 Yes it is possible to claim abatement and cenvat credit.

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Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2015 What is the notification no for claiming abatement and how to claim abatement and cenvat credit while filing Service Tax Return

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 November 2015 Notification No. 09/2013 select the notification to claim abatement in drop down box.

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Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2015 But Notification 09/2013 says CENVAT credit on inputs used for providing the taxable service has not been taken under the
provisions of the CENVAT Credit Rules, 2004. Than Whether payment of Service Tax to sub contractor will not amount to Cenvat Credit on Inputs. Pls reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 November 2015 Cenvat credit on input materials not allowed but payment of service tax to sub contractor is allowed.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 November 2015 And where to take this payment of Service Tax to sub contractor in ST3. Whether this will be taken as Input Credit or any other option available.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 November 2015 Take it as input credit.