Cenvat on real estate developers

Shivish Verma (C A) (376 Points)

30 March 2017  


My client is Private ltd company building residential flats and charging service tax a

@ abated rate i.e. 3.5 %.

they sub contracted thier work to another company.

That comapny raised invoice for works contract taking value of 40 % (service portion) and 50 % of service tax to be paid by reciepient and 50 % service tax to be apid by service provider . 

My querry is whether the service recipeint is eligible for cenvat of 50 % of service tax he paid.


In my opinion yes, he can take cenvat credit

Please confirm