CA PRAKASH KUMAR SUTHAR (CA Practice ) (26 Points)
16 January 2015i want to khow that i have pay service tax on labour payment 7.2 lac ( pvt ltd company ) on reverse charge basie .and i arrise bill amount to 6.5 cr and tax on it .(on work contract)
6.5 *40% abrndment *12.36%=3213600 can i get cenvat credit on payment of 3213600
and net payment 3213600-720000=2493600
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 16 January 2015
Yes, since no one-to-one correlation is required for availment of CENVAT.
However, it must be ensured that in case the service tax under reverse charged has been deposited on account of services procured for specifically providing an exempt service subsequenlty, then no CENVAT of the same shall be allowed per se.
PRADEEP REDDY
(CHARTERED ACCOUNTANT)
(664 Points)
Replied 16 January 2015
Hi prakash,
SInce the Service tax is paid after availing abatement, no CENVAT credit is allowed
Sahil Bhatia
(Practicing Chartered Accountant)
(290 Points)
Replied 17 January 2015
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 17 January 2015
Dear Mr. Pradeep & Mr. Sahil, in works contract, abatement concept has been dispensed with from 1st July'12( which used to prevail in the form of works contract composition scheme).
W.e.f. 1st July'12, the valuation of works contract has been determined in the rule 2A of Service Tax(determination of value) Rules,2006 itself...which clearly states that CENVAT of only inputs is denied.
It nowhere denies the CENVAT of input services.
Henceforth, works contarct is not dealt by any abatement scheme, the same is being taken care in valuation rule itself.
Please refer N/N 24/2012-ST dated 24-Jun-12 for removal of doubts.
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