TaxTMI 
TaxTMI 
Dear Sir,
We are a mfg co and registered under ISD,please advise us whether we can avail Service Tax Credit on charged 70% of value in case of Works contract Service relating to construction activities.Thanks & Regards.
Service Tax credit availment on 70% of Works Contract Service related to construction
29 Apr 2016 
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Guest 
Service tax credit on works contract disallowed for construction services; specified input services remain creditable.
Input service credit on the service portion of works contracts and on construction services is excluded from Cenvat credit; however, input credit is available for separately identifiable specified services (such as transport or architect services) used in providing construction services, provided those services are not the service portion of the works contract or otherwise within the statutory exclusion. (AI Summary)
Input service credit on the service portion of works contracts and on construction services is excluded from Cenvat credit; however, input credit is available for separately identifiable specified services (such as transport or architect services) used in providing construction services, provided those services are not the service portion of the works contract or otherwise within the statutory exclusion. (AI Summary)