Excise Duty set off

Dear Samit,
 

As long as you are not claiming any abatements under not .1/2006 or others where there is a restriction on avaiolment of credit ( such as 12/2003 where the material deduction is claimed) then you can claim the excise duty on inputs used in providing the service. Furtehr the capital goods used in providing the service would also be eligible for credit - 50% in the year of procurment and 50% in the subsequent years of use.

We are in to Construction contracts & we have a Service tax payment Liability. Can we take credit of excise duty paid on matrial purchase used in construction for Service Tax Set off

The credit on inputs like steeel cement can be availed only if the ST is being paid on the gross amoun tof the contract. Abatments cannot be claimed in such a case.Please laso inform the dept . of opting for the route.

can u provide a ready reference from any source regarding this?

 I AM A SERVICE PROVIDER AND FOR THAT I AM PURCHASING MATERIALS FROM MANUFACTURER AND PAYING EXCISE DUTY THEREON AND PROVIDING SERVICES. SO CAN I GET A CREDIT OF INPUT EXCISE DUTY PAID AGAINST SERVICE TAX OF SERVICE PROVIDED BY MY FIRM....

PLZ RPLY ME

DEEPAK PATEL

MENAGER, GAYATRI ELECTRICALS WORK.