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CENVAT credit - Works Contract

Service Tax - Started By: - Krishna Kumar A - Dated:- 1-6-2016 Last Replied Date:- 4-6-2016 - Dear Experts,One of my client (proprietary business)is providing works contract service to a Co-operative society. To be more specific, service is in the nature of building their new office. Now my client would like to subcontract this to another Pvt. Ltd Company. In this regards, I would like to know: Whether my client will be able to avail CENVAT credit of the Service tax billed by the Pvt. Ltd. Compa .....

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y is possible only after going through terms and conditions of agreement executed between your client and sub contactor. - Reply By Krishna Kumar A - The Reply = Dear Kasturi Sethi Sir,There are 2 cases, in the first case, My client would like to subcontract the entire Works Contract (including material) to the Private limited Company. In the second case, only labour supply contract is given to Private limited company instead of entire works contract as mentioned in the first case.For the both c .....

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ar Sir, In first case, ST is payable on Service Portion of 40% in terms of Notification No.24/12-ST. Input Service credit is allowed for service portion only i.e Architect Services, finishing, Repair, renovation, alteration etc. Input service credit is not admissible for construction of building, part thereof, laying of foundation, structure for support of capital goods etc. The remaining 60% is not abatement which is provided under Notification No.26/12-ST. RCM is applicable in this case. In se .....

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