SERVICE TAX SUB CONTRACTED WORK, Service Tax

[GANESH KANCHAN]

DEVELOPER FIRM (OWNER OF THE LAND) EXECUTING RESIDENTIAL COMPLEX PROJECT HAS SUB CONTRACTED STRUCTURAL WORK TO REPUTED BUILDER AND SERVICE TAX (INCLUDING S T ON MATERIAL SUPPLY) + VAT  CHARGED IN RA BILLS ARE PAID.   DEVELOER FIRM CONTENDS THAT AS PER BOARD'S circular no 108/02/2009 DATED 29.01.2009 (NOT RESCINDED BY THE BORAD TILL DATE) SUB CONTRACTOR SERVICE AVAILED BY IT IS TO DEDUCTED WHILE ARRIVING FIRM'S TAX LIABILITY. IS THE CONTENTION CORRECT ? 

ON THE OTHER HAND IF 75% ABATEMENT IS AVAILED AND CENVAT CREDIT IS ALSO TAKEN ( AFTER 01.07.2012) DEVELOPER FIRM'S TAX LIABILITY IS NEGATIVE (THAT IS REFUND). IS IT CORRECT ? 

Posts / Replies

[MANDAVILLI RAMAKRISHNA]

yes. ST paid to sub contractor can be taken as input and after abatement, excess amount

was resulted, refund can be claimed.