Non availment of abatement in construction service?

In case of a Construction service if we "do not" avail abatement of 70% (In order to claim CENVAT credit on input) On what amount do we pay service tax?

1) The entire sale proceeds or,

2) Only amount related to service portion (i.e. Ignoring value of materials included)  

Is there any Circular etc to verify the matter?

Thank you. 

 

Replies (1)

Logically speaking if tax is paid on entire amount then credit of input also should be available.However, there is specific exclusion in the cenvat credit rules to allow credit of only service portion. The issue is litigation prone.

Only amount related to service portion

Read more at: /forum/non-availment-of-abatement-in-construction-service--251530.asp
Only amount related to service portion

Read more at: /forum/non-availment-of-abatement-in-construction-service--251530.asp

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