26 September 2009
Dear Friends I WORK FOR A CONSTRUCTION COMPANY. AS PER OUR LOCAL VAT THE MATERIAL LABOUR RATIO IS 75:25. WE ARE REGISTERED UNDER LOCAL VAT AND SERVICE TAX ONLY
MY QUERY 1. CAN I ADJUST INPUT TAX PAID ON SERVICES RECEIVED AGAINST OUTPUT TAX PAID ON SERVICES RENDERED
2. CAN IN CLAIM INPUT DUTY PAID AGAINST OUTPUT TAX PAID ON SERVICES RENDERED
03 October 2009
You could pay ST on 25% utilising the central excise duty on capital goods used in providing the service as well as input services credit. However the input credit would not be available when deduction of 75% claimed for materials.
CAclubindia
