28 February 2009
A building contractor take a contract with material then he is liable to pay service tax and VAT. Now my query is can he claim input credit of VAT in work contract tax and Excise paid on material in Service tax. Coz, when he purchase bills are charged with excise and vat. so my query is whether he can take set off vat against vat and excise duty against service tax.
01 March 2009
The contractor can take the credit of capital goods and input services only if he opt for composition scheme in work contract under service tax. However he is not eligible to take credit of inputs i.e. the excise component in the raw material like cement, steel, bricks, etc. consumed.
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