Cenvat credit of service tax

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This query is : Resolved

Harish (Querist)

08 October 2016 We are paying service tax(under abatement) to an agency for arranging transportation, accommodation charges and booking if air tickets to our employees who goes on project work (which is our company's business). My doubt is whether we avail CENVAT credit of abated service tax that we have paid on such services..? Thanks in advance..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 October 2016 Yes you can avail cenvat credit on abated service tax provided service tax payable project work.

Harish

Harish (Querist)

10 October 2016 Thank you for clarifying.. And can we avail credit all input abated services....

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 October 2016 Yes you can avail.................

Harish

Harish (Querist)

10 October 2016 Thanking you again, If yes.. Suppose abated service tax that we have paid is 9% (I.e. 60% of 15% ST), whether we can avail complete 9% as service tax OR we have bifurcate the ST paid as follows to avail CENVAT :- ST - 8.4% (60% of 14%) SBC - 0.3% (60% of 0.5%) KkC - 0.3% (60% of 0.5%) Total 9% Kindly clarify...

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 October 2016 You can avail total 9%.

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