15 May 2009
For calculation your should know the Service tax law. Basically the abatement is the deduction given for materials costlike 67% of total consideration. When Abatement is claimed then CENVAT credit cannot be availed. On the balance 33% of total consideration the tax of 10.30% has to be computed.
16 May 2009
I know Service Tax Law and as per your reply I agree that on 33% Service Tax Pay @ 10.30% after Gross Value Charged In Invoice.
But Suppose We go For Works Contract Service Than We can avail Cenvat Credit on Input Goods & Services?
Secondly I transfer my contract to Sub Contractor than For Payment of Service Tax Who is liable?
And suppose sub contractor charge Service Tax to me and deposit in Govt. Than Also I have to charge to Client in my bill and take Cenvat Credit For ST Charge by Sub Contractor OR I have to Raised Invoice Excluding ST?
CAclubindia
