Residential construction service v/s cenvat credit

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Tushar Rameshchandra Thakkar (Querist)
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13 December 2014 Builders launch a residential project. For this project they appoint labour contractor (without materials), means all materials provided by builders only and land also own by builders. In this situation builders paid periodically to labour contractor with service tax 12.36% and builders also receive installments from customers (flat Purchaser) with service tax of 3.09% (abatement rate). So, my question is, can builder eligible cenvat credit (labour contractor service tax) while they deposit Service tax which collect from customers.

I also Send Below link which says that builders can eligible to take cenvat credit input service and capital goods but not eligible for input goods. so, please check it give me appropriate ans. is it right or not??

Service Tax and CENVAT options to builders from July 2012 ... https://aviratshiksha.wordpress.com/.../service-tax-and-cenvat-options-to-...

CA Robin Betala

CA Robin Betala (Expert)
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13 December 2014 When you claim abatement on output service you cannot take cenvat credit of input service

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Tushar Rameshchandra Thakkar

Tushar Rameshchandra Thakkar (Querist)
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13 December 2014 Thanks Sir,

But, I Send Below link which says that builders can eligible to take cenvat credit input service and capital goods but not eligible for input goods. so, please check it give me appropriate ans.

Service Tax and CENVAT options to builders from July 2012 ...
https://aviratshiksha.wordpress.com/.../service-tax-and-cenvat-options-to-...

CA Robin Betala

CA Robin Betala (Expert)
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15 December 2014 After 08/05/2013
Abatement is available of 75% and Cenvat credit is available of Input service and capital goods so you can claim cenvat.

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Tushar Rameshchandra Thakkar

Tushar Rameshchandra Thakkar (Querist)
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15 December 2014 Thank you sir,
I would be grateful to u, if you suggest me any further guideline or any relevant case for updating my knowledge for the same.

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