SANJAY THAKOR (MANAGER-FINANCE) (68 Points)
28 October 2010Service provider is providing abated rate of service. Can he claim CENVAT credit against the Service tax collected at abated rate ?
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 29 October 2010
Cenvat credit restriction has been built into some fo the abatements notification. If one were to apply 1/2006 as amended then no credit is available.
Further in case of WC/ 12/2003 it would be preferable to only avail the capital goods and input service credit and avoid the credit on value of material since it is deducted. It maybe noted the law may not be explicit in this reagrd.
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