Cenvat credit - Works Contract composition

Yes cenvat credit can taken. Input credit used for providing output service is eligible for cenvat credit.

Under composition scheme under works contract service cenvat credit can be taken against input services and capital goods and not against inputs. Hence, cenvat credit can be taken on service tax  ( 4.12%) paid on the bills of subcontractor.

Input service and capital goods are eligible for cenvat. Under given case, cenvat credit of sub-contractor service can be taken.

Dear Experts,

we have given contract for making a Machine to work contractor. can we take cenvat credit on these material 50% or 100%. pl. advice.

Thanks