We are executing Civil works order for one of our customers. we do not avail abatement and charge service tax in full ie 12.36% on services rendered by us . we take service tax credit on the rawmaterils (steel, cement) purchased by us. These materilas are given to our subcontrcator , (who is also registered under service tax ) . WE also take credit for the service tax charged by our subcontractor on his labour bill.
Is it right to take cenvat credit both on Exice duty of Rawmaterials and service tax of our labour contractor Bill.
Or is the labour contractor only can take credit for the Excise duty of the rawmaterials purchased by us and given to him and we are not supposed to take credit?
Please advise.
CAclubindia
