Dear Sir,
We are a turnkey project undertaker and registered with service tax as a works contract service provider.
Jayesh Khatri
Menu
Service Tax Input Credit
Replies (3)
Yes, the cenvat credit can be availed on all the material used for works contract. But, the only thing is service tax should be charged on full value of the invoice i.e. both material and labour portion. Further VAT is to be charged material portion.
If the customer is a Service provider / manufacturer then, he can take the Service tax credit.
Any duty paid on input for capital goods and which is received in the premises of the output service provider, can be taken as the cenvat credit (Rule 3 Cenvat credit rules).
Being a service provider, you can take CENVAT credit of excise duty paid on any purchases of goods or services used in provision of your services(except credit for capital goods - as rules for capital goods are different).
Ashish Joshi
Recent Topic
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
Related Topics
CAclubindia
