Service tax credit on labour contract bill

Ramesh kumar (Manager - Central Excise )   (126 Points)

28 January 2012  

Sir,  any one!  It is service tax credit eligible on labour contract bill.

Ex.  One contractor deputed 50 labours in a factory on wages basis & he given labour charges bill of the month for Rs/- 2,00,000/-  Service tax 10.30%  of Rs- 20,600/-  Amount of tax 20,600/- are eligible or not as cenvat credit.  We have licence on GTA service.

Thanks.