Cenvat Credit

This query is : Resolved

Jignesh (Querist)
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21 January 2009 Hi CAs,

Query:

Whether Cenvat credit will be available on input and input services of EPC contracts for constructing Pipelines for Natural Gas?

EPC means Engineering,Procurement and commisioning.So,it includes both Material and Labour. So it includes Excise and service Tax both.

The assessee is service provider dealing in transportation of Gas on which Service Tax in payable.

U may send ur reply on ca.jigneshmaniyar@gmail.com

Thanks in Advance

Rajesh Kumar

Rajesh Kumar (Expert)
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30 January 2009 As the service provided by you is an output service, you can take cenvat credit on input/capital goods and input service used in providing these output services. However, is you take credit on these items, you will not be able to avail composition scheme.