28 April 2016
A client is engaged in airport cleaning which includes : Heavy Mechanised Cleaning Machines - 20-30 Lacs Cost Lift Machines for Outside cleaning Chemicals Airport Authorities are taking 70% abatement and pay ST on balance ( As WCT-Works Contact) Service Tax Says it is cleaning contract and no abatement is allowable. Seek opinion as to abatement ? Whether Excise Duty on Capital Goods i.e., machinery used for the purpose will be eligible for cenvat credit.
29 April 2016
It is not a works contract hence no abatement is allowable. Cenvat credit on excise duty paid on capital goods is available for this service.
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