Service Tax Charged under works contract composition scheme i.e. @ 4.12% by the service provider is availble as cenvat credit to Service Receiver of that service or Not?
As per my opinion the same is not cenvatable reason being that:
As per rule 3(1)(ix) of Cenvat Credit Rules 2004, cenvat credit is available only of the service tax leviable under section 66 of the Finance Act. Charging of service tax under composition scheme is not covered under section 66 of Finance act.
Charging of Service tax under composition scheme is stipulated in Rule 3(1) of “Works Contract (Composition Scheme for payment of Service tax) Rules, 2007” and the same has not been made available for cenvat credit as per Cenvat Credit Rule 2004.
Kindly suggest.
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