Dear Sir,
We have SITC order for equipment . Our Customer is asking us to charge service tax on 33% of the value of Civil Invoice. We want to know :
1]If we do as above will we be able to claim Input credit for the service tax charged by our contractor?
2]Can Customer claim Input credit of service tax charged in our Invoice?
Thanks,
The service tax can be paid on 33% of the value of total value of contract plus the cost of material
used in the construction service, in this case the benifit of Cenvat credit will not be available
if the service tax is paid on the 100% value of contract price, the cenvat will be available
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Final
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B Thejas and Associates
Bengaluru
CA Foundation
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Varma Raja & Associates
Thrissur
CA Inter
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M N Rao & Associates LLP
Vijayawada
CA Inter
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CCI
Pro
CAclubindia
