One company is registered under Works Cont. Service under Composition Scheme. It also sub-contracts part of the contracted work & this sub-contractor is also registered under Works Cont. Service under Composition Scheme.
Question: 1) Whether the company can take credit of service tax paid on bills received from its sub-contractors?
24 February 2010
Once the company has opted for composition, no input credit is allowed. Composition scheme is floated for the assessees who has not maintained bifurcation and does not intend to indulge in the procedural work. Hence if the company has opted for composition work, no set off on the input credit can be claimed on the bills received from its sub contractor.
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