Composition service tax @ 4.12 %

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Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2012 Dear Sir,

Can I get the service tax credit of Rs. 330.00 which is levied on work contract tax scheme.

e.g. supply of material Rs. 5000, site preparation job with consultancy Rs. 3000 = 8000 add service tax @ 4.12 % (Composite billing ) 330.00 add vat @ 5 % 416= total bill 8746.00 please help.

CA Pradeep Sharma

CA Pradeep Sharma (Expert)
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19 May 2012 yes, u can take credit if input service used for providing taxable service

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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19 May 2012 Rule 3(2) of the Works Contract(Composition Scheme for Payment of service Tax) Rules, 2007 provides that the provider of taxable service opting to pay service tax under the composition scheme is not entitled to take CENVAT credit of duty on inputs, used in or in relation to the said works contract, under the provisions of the CENVAT Credit Rules, 2004.
There is no restriction under Notification No. 32/2007- Service Tax dated22.5.2007 to take CENVAT credit of duty paid on capital goods and service tax paid on input services.

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