Works contract

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Can cenvat credit on input services be adjusted against service tax payable on works contract ?

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service tax payable under work contractor under PRM receiver of service cann't utilise cenvat credit of input service. first we have to pay it after that we can take cenvat credit of it.

 

 

You can take cenvat credit of service tax paid on input services that can be utilised against service tax liability on works contract service. Please be sure that you would not be entitled for cenvat credit on input services specified as exception in the definition of Input Services under CCR, 2004. Go through the definition of input services for detailed list of disallowed input services.

 

Thanks and Regards,

 

Manoj B. Gavali

Originally posted by : arun

Can cenvat credit on input services be adjusted against service tax payable on works contract ?
 

Even if Partilal abatement is excersiced, Person providing services under works contract can take CENVATcredit of input services and capital goods. . But if  service tax paid is in relation to erection , commissioning, installation, commercial or industrial construction of complex , then only 40% of the service tax would be considere for CENVAT credit. . . 

Yes Cenvat Credit is available for work contractor 


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