Service Tax Under Works Contract Composition Sche,

Any body to reply please

Cenvat Credit of Input  Services and Capital Goods can be availed. However, Cenvat Credit of Input goods is not available.

Circular No 96/7/2007-ST dated 23-08-2007 , clarifies that Rule 3(2) of the WC (Composition Scheme) Rules 2007 provided that the service provider opting to pay ST uner the Cpmposition Scheme is not entitled to claim Cenvat Credit of duty on Inputs, used in or in relation to the said works contract, under the provisions of the Cenvat Credit Rules, 2004. However , there is no restriction  under notification No 32/2007 - ST dated 22-05-07 to avail the cenvat credit of duty paid on Capital Goods and ST paid on Inputts Services.

My query is different. For example I am a Principal Contractor and I am awarding sub-contract to sub-contractors. And my sub-contractors are charging service tax under works contract compostion payment scheme i.e. @ 4.12. Then whether I can claim the cenvat credit of service tax charged by sub-contractor @ 4.12%.

Kindly read my query carefully and reply.

Rate of service tax mentioned under section 66 still is 12%. And 4% rate is mentioned under rule 3 of “Works Contract (Composition Scheme for payment of Service tax) Rules, 2007” and the same is not stipulated for availment of cenvat credit under cenvat creidt rules.

Then how can we take credit of the same.
 

please confirm me the rate of tax  on works contract tax under composition scheme