chartered accountants
36 Points
Joined April 2008
my client is an electrical contractor , he is taking benift of 67%and 33% under n.f. no. 1/2006 however he is also providing services as labour work only on which he is paying 12.36% on total contract . Can he avail input credit / cenvet credit on service contract on which 12.36% is being paid on whole value of contract. Service tax dep. is of the opinion that once u exercise 1/6 n,f, option for combined contracrt you are not entitled to input rebte even on those contracts on which 1/6 n.f. i.e 67/33 is not applicable . Let me know the corect positon ?