Availing cenvat credit
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
16 September 2011
My question in respect of works contract services
billing made to two parties, say Debtors 1 & Debtors 2.
In case of Debtors 1 - service tax charged @ 10.3% on 33% of the bill(remaining 67% availing abatement).
In case of Debtors 2 - Service tax charged @ 10.3% on 100% of the invoice.
the work of Debtors 1 & 2 subcontracted to Creditors 1 & 2 respectively & creditors also have the service tax on their bill.
Now my question is can availment of cenvat credit is possible for services provided by the creditors.
billing made to two parties, say Debtors 1 & Debtors 2.
In case of Debtors 1 - service tax charged @ 10.3% on 33% of the bill(remaining 67% availing abatement).
In case of Debtors 2 - Service tax charged @ 10.3% on 100% of the invoice.
the work of Debtors 1 & 2 subcontracted to Creditors 1 & 2 respectively & creditors also have the service tax on their bill.
Now my question is can availment of cenvat credit is possible for services provided by the creditors.
17 September 2011
if input credit is likely to get availed then transaction to debtor 1 would get taxed @10.3%
any one system should be operative for one assesee, either full tax with input credit, or abatement without input credit,
both options are not available for a single service provider.
any one system should be operative for one assesee, either full tax with input credit, or abatement without input credit,
both options are not available for a single service provider.
18 September 2011
I agree with the expert
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