Excise credit against Service tax liability

[Rudrayani Shedjale]

Hello

we are into works contract business.

we have service tax registration.

we pay service tax on work contract services provided to our clients.

recently we have purchased a machinery for business use on which the supplier has charged us excise.can we take credit of the same against our service tax liability?

please guide.

AI Summary

Business Can Use CENVAT Credit from Machinery Purchase for Service Tax, 30% Abatement Possible with Conditions A business involved in works contracts inquired about using excise credit from a machinery purchase to offset service tax liability. Experts responded that if the machinery is used in the works contract business, CENVAT credit can be availed against service tax output liability. An additional clarification mentioned that under certain conditions, a 30% abatement is available, provided CENVAT credit on inputs is not taken and the land value is included in the charge. The consensus among the respondents was that the service tax paid is eligible for credit, and the inquiry was appreciated for the guidance provided.