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Service tax on construction abatement 75%

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My client is a builder availing the benefit of abatement of 75% and not claiming any input service credit, but on other services he is charging service tax @ 12% like parking charges etc. Can he avail the input credit on these "other services" ?

Please help me out on this issue asap along with the proper supporting?

Replies (2)
Originally posted by : umesh

My client is a builder availing the benefit of abatement of 75% and not claiming any input service credit, but on other services he is charging service tax @ 12% like parking charges etc. Can he avail the input credit on these "other services" ?

Please help me out on this issue asap along with the proper supporting?

he can take input credit of input services which are exclusively used in the taxable service of providing parking charges. 

he can not avail the input credit on input services which were used in abatement scheme. 

In the post amendment scanerio i.e. after 1st July-12 a builder can take the credit of input services and capital goods even if he is claiming the abatement of 75% with the land value. This is bonanza for builders.


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