Service tax on works contract

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Bal Mukund Thakur

Assistant Audit Manager

34 Points Joined November 2011

In case of Works Contract where 60% abatement is available can we cliam input credit of Reverse Charge Liability. Plz Suggest me gies.

Replies (1)

Guest

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/