Service tax on works contract

This query is : Resolved

Ruchi Agarwal (Querist)
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28 December 2013 A Pvt. Ltd. Co. is a Work Contractor providing work contract services to XYZ Pvt. Ltd. Co.It is a Composite Contract i.e. with material and Labour Contract. We are charging Service tax on composite Scheme i.e. on 40% of total amount charged as per Rule 2A(ii) of Service Tax(determination of Value)Rules, 2006.

I have a doubt that whether A Pvt. Ltd. Co. is eligible for CENVAT CREDIT on Input Services & Capital Goods?

CA DHEERAJ

CA DHEERAJ (Expert)
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28 December 2013 IF YOU GO FOR COMPOSITION SCHEME (I.E. 40 % OF GROSS AMOUNT) THEN YOU HAVE NOT ELIGIBLE FOR CENVET CREDIT WHETHER INPUT SERVICES OR ON CAPITAL GOODS

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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30 December 2013 Hi,
You are eligible for Cenvat credit on capital goods, cenvat on Input services but not eligible for Cenvat on Inputs

for more details refer my article available in below link.

https://www.caclubindia.com/articles/service-tax-on-construction-industry-overview-18781.asp#.UsBsKPQW0XM

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