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Cenvat credit on service tax

abatements 1292 views 5 replies

i 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

Replies (5)

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.

Yes, u can books the CENVAT credit.

Hi prakash,

SInce the Service tax is paid after availing abatement, no CENVAT credit is allowed

 

Agree with pradeep ji

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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