Ketan Gadhiya (Article) (49 Points)
06 December 2012Can anyone say me that if I am availing input service of contractor ( Which is 100% taxable) & I am providing output service of construction of residential flate (In which I avail 75% abatement) & hence only 25% of value portion is taxable, so there is clear cut difference that I am availing input credit of 100% taxable Service & Providing output service of with abatement only 25% portion is taxabale, can I avail 100% input credit or not? Please explain in detail.......
dharmendra singh
(asst manager finance)
(53 Points)
Replied 06 December 2012
CA. VIKAS GUPTA
(PROPRIETOR)
(305 Points)
Replied 06 December 2012
Hi,
as per notification no. 26/2012, abtement of 75% is available if CENVAT credit of inputs used for providing service has not been used. It means that if input service has been used for providing output service input of the service tax can be taken.
Hence, i think CENVAT of input service can be taken even if abatement of 75% is claimed
thanks
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 06 December 2012
Presumably it is a labour job. Credit is available post 1.7.2012 fully.
If SC has paid incorrectly [ as credit on inputs not available] then there maybe an issue as amount paid is not relevant what is payable/ leviable.
Maniraj A
(CA FINAL & CS FINAL)
(171 Points)
Replied 07 December 2012
Its Very clear that CENVAT can be taken for Input Services. The abatment schment will prohibit to take CENVAT credit only for INPUT ( Means EXCISE).
Refer Vikas Gupta comment...
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