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Service tax input

Narayanan (student) (30 Points)

21 September 2010

Hai,

I need some clarification about service tax input.

I am working in construction industry and i am charging Service tax @ 4.12% (Composite scheme) against my service to my clients.

whether I and my client (Service receiver) take input benefit against composite scheme, if available explain me briefly with government notification no.

Regards,

R.Sathyanarayanan.

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4 Replies

Ankit Singla (B.Com (Hons.), CA) (88 Points)
Replied 23 September 2010

Hi Narayanan

You cant take the input credit of service tax or any other tax paid.

https://www.servicetax.gov.in/workcontract-rules.htm

Yashwanth Jain (Ca ) (82 Points)
Replied 27 September 2010

The service provider if he opts for composition scheme ie paying service tax @ 4% for work contract services then he will not be entitled to take cenvat credit on inputs but no such restriction applies for taking cenvat credit on input services and capital goods.

Pinky Agarwal (Chartered Accountant) (426 Points)
Replied 28 September 2010

hello narayanan,

You can't take benefit of input tax credit.

anshul (ca ) (40 Points)
Replied 28 September 2010

Mr Yashwanth Jain is absolutely correct. In the instant case you cannot avail CENVAT credt of inputs but you can avail CENVAT credit on input services and capital goods.