SERVICE CONTRACT (URGENT)

This query is : Resolved

RAJ VERMA (Querist)
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20 May 2011 SIR,
I AM WORKING IN A MECHANICAL CONSTRUCTION CO. WE PURCHASE STEEL & AFTER THAT FABRICATE IT & USED IT IN MECHANICAL SERVICES IN REFINERY.

I WANT TO KNOW THAT WHETHER WE CAN TAKE INPUT OF EXCISE DUTY PAID ON PURCHASE OF STEEL WHILE PAYING SERVICE TAX.

IT'S URGENT PLEASE REPLY.

U S Sharma

U S Sharma (Expert)
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20 May 2011 no,

works contract composition scheme does not allow input credit of input/ input services.

RAJ VERMA

RAJ VERMA (Querist)
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20 May 2011 SIR,

WE PAY EXCISE DUTY WHILE PURCHASING STEEL. AFTER THAT WE FABRICATE IT & SALE IT TO PARTY THEN WE NEED TO PAY EXCISE DUTY OR NOT.

ALSO TELL THAT WHY WE CAN NOT TAKE CENVAT OF EXCISE DUTY PAID ON INPUT i.e. steel.

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U S Sharma

U S Sharma (Expert)
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20 May 2011 if u are manufacturer then u can take cenvat credit on steel and other inputs on clearence of goods to party on payment of cenvat duty.