If a contractor is charging service tax under composition scheme at 40% of the total value of the works contract, can he claim cenvat credit?
Please guide me on cenvat credit of which all expenses can be claimed.
Neha sharma (-) (1257 Points)
16 April 2014If a contractor is charging service tax under composition scheme at 40% of the total value of the works contract, can he claim cenvat credit?
Please guide me on cenvat credit of which all expenses can be claimed.
CA Sanket Gujar
(Professional)
(74 Points)
Replied 16 April 2014
If it is a service relating to building, it will be disallowed.
In other cases,
6.18 % charged service tax will be available for credit and remaining 50% i.e. 6.18 % will be available next month when paid.