20 December 2014
A manufacturing company is constructiog its building and making payments to an individual against his bills for labour charges for building services.
The company itself is paying service @ 12.36% under partial reverse charge mechanism on labour charges by cash.
Whether the company can avail the aboce paid service tax?
09 January 2015
CENVAT credit on Input Services and Capital Goods Allowed As per explanation 2 of the determination of value rules, there is no restriction on claiming the CENVAT credit of Input Services and Capital Goods. Thus the provider of works contract service can claim CENVAT credit of Input Services and Capital Goods as per the CENVAT Credit rules 2004.
On the same analogy, service tax paid under RCM can be claimed.
09 January 2015
s sir u r right dat PROVIDER OF WORKS CONTRACT SERVICE can claim credit..bt my query is regarding a manufacturing company wic is constructing building.please clarify
10 January 2015
You are going to pay excise duty on the product you manufacture. Avail cenvat credit on capital goods i.e. service tax paid on construction of building.
CAclubindia
