Bal Mukund Thakur (Assistant Audit Manager) (34 Points)
04 January 2013In case of Works Contract where 60% abatement is available can we cliam input credit of Reverse Charge Liability. Plz Suggest me gies.
yes you may take input credit on capital goods but not on cess and other duties paid:
Cenvat Credit: The Provider of taxable service could not take CENVAT credit of duties/cess paid on any inputs used in or in relation to the said works contract. However, credit in respect of taxes paid on capital goods and input services shall be available.
Source: https://www.indiantaxupdates.com/2012/11/05/service-tax-on-works-contract-wef-1st/
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