Availing cenvat credit during transition period

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2011 Dear Sir,

I have a client is a works contractor.Earlier he use to pay Service Tax @ 10.3% and avail 100% cenvat credit.However later in the mid of the year he registered himself for Works Contract Composition Scheme and paying ST @ 4.12%

However he continued charging ST @ 10.3% for earlier contracts as service was already rendered inspite of being registered as Works Contract.

As of date there is no tracing as to avail Cenvat Credit on what inputs and on what inputs not avail cenvat credit due to composition scheme.This scenario prevails even till date.

Sir, can you please guide me as to how to avail cenvat credit and in what way ST returns will have to be filled.

The client is a registered Pvt Ltd Company

U S Sharma

U S Sharma (Expert)
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30 October 2011 its the homework of assessee, to segregate the cenvatable bills.

however it looks hard to avail input credit if any bill is raised under composition scheme.

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2011 He has been charginig on all previous bills Service Tax @ 10.3% and Vat @ 5%.These bills are works contract bills and Service tax @10.3% has been charged on gross contract recepts and not on amt exclusive of Vat.Is that possible.

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