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Set off & Abatement

This query is : Resolved 

22 September 2010 Hi,

A assessee is carrying out construction of 2 residential projects, one with material wherein he claims abatement of 67% as per notification Sl.No.10 1/2006 and at another project he is pure Labour contractor where he charges full rate of service tax.

Now, is this mode of charging service tax is ok?

Also, can he take set off for the service tax charged to him by his labour Sub-Contractor. And and against which service tax liability? one in which he has claimed abatement of only as a pure Labour contractor.

23 September 2010 mode of charging service tax is correct.

Input credit may be availed only for related business ( work as labour contractor)


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