I am a contractor and executing Work contract of mixed nature such that on some of the contracts there is levy of service tax and on some there is no applicability of service tax. I am using composition method to pay service tax. My question is, as I have to use CENVAT on capital goods (Concrete Pump, Batching Plant etc) and as these Capital Goods will be used in both type of contracts, then what is the status of availing of CENVAT.
Regards
Cenvat credit shall be alloweed for input services and also on capital goods. WCS composition scheme doesnt allowed to use Cenvat credit of inputs. If you want ti take cenvat credit on inputs.. you must have to opt out of composition scheme and pay service tax at full rate instead of with 60% abatement.
Before taking Cenvat credit on capital goods, be sure that capital goods you purchased must fall withing the definition of capital goods as defined under CCR 2004
Thanks and regards,
manoj B, gavali
CAclubindia
