Abatement and construction service

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This query is : Resolved

VIKAS SHARMA (Querist)

30 December 2009 Can a service provider forego the abatement of 67% during the year in the case of an ongoing contract and start paying service tax on full value and CLAIM CENVAT CREDIT FROM THE DATE ON WHICH HE STARTS PAYING ON FULL VALUE AT FULL RATE WITHOUT ABATEMENT. CAN DEPARTMENT SAY THAT ABATEMENT OPTION ONCE EXERCISED CANNOT BE WITHDRAWN IN THE MID OF THE YEAR.

ANIL JANGID

ANIL JANGID (Expert)

30 December 2009 In my views you should take credit of excess service tax paid,and utilised in future service tax payment.
And now srtart the service tax payment to consider 67% abatement.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 December 2009 I think department is right , if you are opted for abatement again you cannot switch over to regular,otherwise you have to re calculate from project starting till now the regular scheme

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