Dear Sir
I am a Contractor and I am Service Tax Collect from my Contractor and at same time i was Service Tax Paid to my Sub Contractor at Service Tax Paid Time I will Cen Vat Credit Taken on Payment to my Sub Contractor.
Exmp. I was Collect ST From my Contractor 10
and I am Paid ST to my Sub Contractor 5
Then i will paid ST only 5 is this correct or not
and Cen Vat Credit taken only i was Amount paid to My Sub Contractor or Bill Received my Subcontractor Plase Tell
Thanks
in works contract there are two options
1) pay tax at full rate and avail input credit
2) avail abatement .pay tax @ 4% and forget input credit
choice is yours ..........
Under works contract where you opt for compostion - 4.12% or deduction under Not 12/2003 then the input services credit is available as well as capital goods credit. Inputs credit of materials would not be available. Sub contract credit is available under these 2 options.
Our Assessee is Registered Under Business Auxilary Service Please Replay.
| Originally posted by : rajesh | ||
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Our Assessee is Registered Under Business Auxilary Service Please Replay. |
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under business auxilary services , there is no bar to avail credit on input services utlized for providing "taxable output services".
S.B.G. & CO. CHARTERED ACCOUNTANTS
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