24 October 2011
I AM PROVIDING ERECTION AND COMMISSIONING SERVICE AND ALONG WITH IT ALSO SUPPLY GOODS TO MY CUSTOMERS . I AM ISSUING A SEPARATE INVOICE FOR LABOUR CHARGES CHARGING SERVICE TAX AND FOR SUPPLY OF GOODS CHARGING VAT. MY QUESTION IS THAT :- WHETHER I CAN CLAIM SET-OFF OF EXCISE DUTY PAID ON MY PURCHASES OF GOODS AGAINST SERVICE TAX PAYABLE.
26 October 2011
There are three options:!.Paying Service Tax on the gross amount including the value of the goods and value of the Service and taking Cenvat Credit Central Excise duty on all the goods involved and used. Cenvat Credit can also availed on input services. (2) Paying Service Tax only on the value of Service without Cenvat Credit. (3) Paying Service Tax on 33% of the Gross amount including the cost of the goods and Services taking abatement of 67%. One more option is paying Service under Work Contract Service.
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