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Clarification on service tax (abatement)

abatements 1679 views 6 replies

Dear Experts,

We are a manufacturing and service provider company and pay service tax under abatement for the service of repair and maintenance. Can we take cenvat credit of all services and utilize the same for output.

Regards

Sampath Kumar

 


 


 


 

Replies (6)
Yes you can....but it should relating to ur business...

I don't think that any abatement is available for Reoairs and maintenance service ....(See Abatement Notification No.26/2012 dated 20.06.2012)

Further, as per general rule if abatement is taken as per notification then in no case cenvat credit can be taken.

Ya if repairs & maintenance in nature of "work contracts" then valuation will be as per Rule 2A of ST Valuation Rules,2007 and 60% of value is chargeable to tax.

Agree with Saurabh maheshwari that there is no abetment for repair & maintainance  Services.. 

but i think if it is in nature of "Work Contract" the valuation will be as per Rule 2A, Service Tax (Determination of Value) Rules, 2006 and

70% of total amount charged for Work contract is taxable as amended by Service Tax (Determination of Value) Amended Rules, 2014. w.e.f. 1/10/2014 

Yes on 70% of total amount charged have to pay service tax..

thanks to all

1) Has it been notified regarding change in service tax rate from 12 to 14% as provided in budget for the FY 2015-16?

2) Service tax liability under RCM for rent a cab which was proposed as 50% in budget for the FY 2015-16 has been notified or not?

Please advice as its urgent

 

DEEPAK


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