Availing cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2011 My question in respect of works contract services

billing made to two parties, say Debtors 1 & Debtors 2.

In case of Debtors 1 - service tax charged @ 10.3% on 33% of the bill(remaining 67% availing abatement).
In case of Debtors 2 - Service tax charged @ 10.3% on 100% of the invoice.

the work of Debtors 1 & 2 subcontracted to Creditors 1 & 2 respectively & creditors also have the service tax on their bill.

Now my question is can availment of cenvat credit is possible for services provided by the creditors.

U S Sharma

U S Sharma (Expert)
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17 September 2011 if input credit is likely to get availed then transaction to debtor 1 would get taxed @10.3%

any one system should be operative for one assesee, either full tax with input credit, or abatement without input credit,

both options are not available for a single service provider.