Service tax - abatement - construction company

Hi,

My client is a "XYZ construction company". They let part of the work to sub contractors. They are raising invoices with Service tax. Can that (service tax) can be taken as a input credit. 

My friend said NO, since the (XYZ)company is coming under abatement of services.

can any one give me a proper suggestion on this.

Thanks in advance.

Replies (2)

Eligible for the main contractor. No condition that input service credit are not taken for them.

W.e.f 01.07.2012 credit of input services and capital goods can be availed even if abatement is availed by the construction company.

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