Dear Expert need advice. For Individual(Proprietorship) business for works contract tax which will be better, abatement rule or RCM rule. Both side(Payer & Receiver) in what way Input credit for that service tax can claim or adjust with output service tax or cenvat credit)
1. Works contract for execution of orginal work- Taxable 40%. ( who can claim Input credit of Service Tax ?)
2. RCM rule 50-50 % will be paid from both side.(who can claim Input credit of Service Tax ?)
Here provider is Individual (Prop. Business) and Receiver has LTD company. We have separet bill for sales tax and labour charges (for service tax) and issued to the service receiver.
Also we have three bill generated with S.Tax 12.36% and submited also to the department. Now should I adjust through credit not issue for excess payment for S.tax. Till now we have no registration with works contract.
Its very urgent. Thanks.
CAclubindia
