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Cenvat to construction services

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This query is : Resolved

SHAMBA PEDNEKAR (Querist)

10 January 2013 A Pvt Ltd company - a builder paying service Tax availing abatement of 75% . I am paying service Tax on 25%. Under reverse charge Mechanism I am eligible for payment of service Tax for security services, Laywer services . The service Tax paid by us under reverse charge can be adjusted (CENVAT can be taken) for payment of service Tax for construction services.

Kaushik Vinod

Kaushik Vinod (Expert)

11 January 2013 Dear Shamba,

Yes you can avail and utilize the Service tax paid under reverse charge by GAR-7 Challan in terms of Rule 9(1) of CCR,2004 for Payment of tax on abated Value under Notification No.26/2012 item No.12.
The Credit of Input can not be taken but the credit of input Service can be availed provided the Services used by you are Input Services in terms of Rule 2(l) of CCR,2004.

Thanks

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