Jayesh (accountant) (42 Points)
15 July 2010Dear Sir,
We are a turnkey project undertaker and registered with service tax as a works contract service provider.
Jayesh Khatri
Harsha
(Chartered Accountant CS (Final))
(227 Points)
Replied 15 July 2010
Yes, the cenvat credit can be availed on all the material used for works contract. But, the only thing is service tax should be charged on full value of the invoice i.e. both material and labour portion. Further VAT is to be charged material portion.
If the customer is a Service provider / manufacturer then, he can take the Service tax credit.
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 15 July 2010
Any duty paid on input for capital goods and which is received in the premises of the output service provider, can be taken as the cenvat credit (Rule 3 Cenvat credit rules).
CA Ashish Joshi
(CA)
(265 Points)
Replied 15 July 2010
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