You can either claim abatement or set-off

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Swapnil S Kanara (Querist)
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22 April 2015 if i charge service tax on a lower rate a applicable as per abatement, can i avail cenvat credit, if No then is it for all kind of services,

I mean only one thing can be done either abatement or input credit.

kindly confirm

CA Amit K. Ganar

CA Amit K. Ganar (Expert)
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22 April 2015 Answer to your query is service specific. Such as in works contract service CENVAT in input material is not allowed but on input services and on capital goods are aloowed etc.

However in general if abatement is availed CENVAT on input and input services is not allowed.

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Swapnil S Kanara

Swapnil S Kanara (Querist)
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22 April 2015 Thanks Amit,

Kindly advice me on the below.

i have came accrosed a client who is asking me to charge service tax @ 4.94 % (ie Abatement), but as i am getting the same service from my vendor @ 12.36 %, so My question is as below

1) if i give my client a bill @ 4.94 can i avail input credit ( ie set off)
2) if i get a bill from my vendor @ 4.94 for this transaction only, how can i calculate my service tax. can i avail 4.94 input credit against 4.94 output service tax paid.

waiting for your valuable reply.

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