Cenvat for builders

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Rohit Garg (Querist)
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29 April 2013 In case the builder has claimed an abatement of 75%, can he claim the CENVAT of Service Tax paid by him under reverse charge under Works Contract and Manpower Supply Services?

CA Vikas Acharya

CA Vikas Acharya (Expert)
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29 April 2013 this is very sure that he can avail the credit, as for builders capital goods' input and input service is allowed, but input on materials is not allowed.

now 1st thing the input can't be used itself to pay the reverse charge liability.

next thing the whole input will not bw allowed, input as per rule 6 of CCR will be allowed as the builder's work includes sale of goods and service both. hence you have to refer rule 6 for proportion of ccr allowed.