Abatement & cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2015 Can we take abatement & cenvat credit simultancy. somebody told to me that we will take cenvat credit on input services only, not on input goods services vide Not.26/2012-ST dated 20.06.2012.

Example:
Advance received - 10,00,000 ST@ 12.36% = 1,23,600
Less: Abatement 70% (1,23,600-86,520) = 37080 is payable.
consultancy services - 1,00,000 ST @ 12.36$=12,360
total service tax payable is (37,080-12,360)24,720 is total payable. is this correct or not.

Thanks in advance

CA Robin Betala

CA Robin Betala (Expert)
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06 February 2015 You have not mention what kind of service you are providing, but as per your question it looks you are in construction business and if so then it is correct as you can take abatement and cenvat credit of input service and not input goods