Service tax implications on private civil works

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Ch.Naga Srinivasa Rao (Querist)
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28 July 2011 Anyone explain about Service Tax on Private Civil works.Actually we are sub contractor to some X Party.We are collecting Services tax @10.3% on total bill amount from X Party and we are given other civil work to sub contract.Our Sub contractor collected Service tax 10.3% from me.My Query is Can i adjust Service tax claim from service tax paybale amount.
Please advise me as early as possible.

Hitender Gaur

Hitender Gaur (Expert)
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28 July 2011 Yes you can get the benefit of CENVAT Input for the service tax paid to your subcontractors, as it is same service which is billed to Mr. X by you.

Ch.Naga Srinivasa Rao

Ch.Naga Srinivasa Rao (Querist)
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29 July 2011 Thanks for your reply.As per your information i understood that i can claim Cenvat Credit what i have paid on capital goods.Here is two things i want to know.

1.We are subcontractor and we are collecting service tax from Client and that is payble to Service Tax Department.

2.We have given sub contract of one private Civil work to some party.They are collected service tax from us.This is i can call it as service tax claim.

My Query is can i adjust above service tax claim(S.No-2) from Service tax payable amount(S.No-1).

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