Credit taken on 75% in labor contractor

[Lok B. Chand]

Percentage of Service Tax payble by the person receiving the Service can take the credit on it.

AI Summary

Credit for Service Tax by Labor Contractors: Rule 3, Cenvat Credit Rules 2004 Conditions Post-July 1, 2012 A discussion on a forum involves a query about taking credit for service tax paid by a labor contractor under Manpower supply service. Initially, full credit was available before July 1, 2012. Post this date, credit is subject to conditions outlined in the Cenvat Credit Rule, 2004. The first respondent clarifies that credit is available based on invoices and tax payment challans, adhering to these rules. The second respondent seeks clarification on a specific provision in Rule 3 of the Cenvat Credit Rule, 2004, regarding its applicability over time in relation to the duty on transaction value.