Work contract

Under composition scheme cenvat credit on input used cannot be taken. But there is no restriction on availing cenvat credit on capital goods and service used in execution of work contract. There is no specific case when a company can opt for composition scheme. It is up to the Company to either opt under Rule 2A(i) or 2A(ii)

I have read some where that rule 2A (II) shall only apply when  valuation  cannot be  done as per rule 2A (I) .

i got ur point that cenvat credit can be claimed only in case of capital goods and service rendered in execution of work contract.

then tel me  how will i find value of  service rendered in execution of work contract (under composition scheme)???

Nothing as such. It is at the option of company to discharge its liability either under 2A(i) or 2A(ii). Value of service rendered under composition scheme is clearly mentioned under Section 2A(ii). There are in all three categories. 40% in case of original contracts, 70% in case of maintenance or repair or reconditioning of any goods and 60% in case of other contracts

Agree with Prashant.

Agree with prashant but 70% is only for movable property and 60% is for immovable properties.

can somebody provide me reference relating to work contract services

Dear RSB, for what you r asking? Pls clarify