Non availment of abatement in construction service?

In case of a Construction service if we "do not" avail abatement of 70% (In order to claim CENVAT credit on input) On what amount do we pay service tax?

1) The entire sale proceeds or,

2) Only amount related to service portion (i.e. Ignoring value of materials included)  

Is there any Circular etc to verify the matter?

Thank you. 

 

Replies (1)

Logically speaking if tax is paid on entire amount then credit of input also should be available.However, there is specific exclusion in the cenvat credit rules to allow credit of only service portion. The issue is litigation prone.

Only amount related to service portion

Read more at: /forum/non-availment-of-abatement-in-construction-service--251530.asp
Only amount related to service portion

Read more at: /forum/non-availment-of-abatement-in-construction-service--251530.asp

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details