Gm all,
I have a query regarding the payment of service tax to the extent of 50 % of service tax under Works contract service w.e.f. 01 july 2012. Her as per notification no.15/2012 of service tax dated 17/3/2012 they have said that the service receiver is liable to pay 50 % of the service tax under WCT.
So my question is can the service receiver utilise Cenvat credit for the payment of service tax to the tune of 50 % (which is Service receiver's share ) under WCT.
Previously under GTA under reverse charge method one is not allowed to utilise cenvat credit for such payment.
in my opininon,
the service receiver who is liable to pay 50% of service tax on work contract cannot avail cenvat credit if he is opting composition scheme ( prevailing rate @ 4%). otherwise he can avail cenvat credit.
ya jean you are correct but... that is applicable in the case of service provider paying service tax under WCT.
but now its the case of service receiver.........
as in GTA when we are service receiver we pay service tax by PLA and dont utilise cenvat .
Sri Aurobindo Gnostic Centre of Education
New Delhi
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