TaxTMI 
TaxTMI 
Our company has issued Composite as well as Divisible Civil contracts.While processng the bills of contractors for payment we insists for two things-the contractor should have claimed ST in the bill & contractor should have ST registration.If the contractor fails to satisfy any one of these two things, we hold the payment of ST.Is it the right way? If we hold the ST in above discussed circumstances, can we book the ST under Cenvatable ST & claim the credit in ST return ?
Input of service tax
21 Feb 2008 
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Service tax billing requirement: withhold payment if tax or registration missing; CENVAT credit only for premises used for output services.
Service tax on civil contracts must be shown in the contractor's bill with the contractor's registration number, and the payer may withhold the tax portion if the bill lacks these details. CENVAT credit for input services relating to construction/works contracts is available only when the constructed premises are used to render taxable output services; if the premises are used for renting, CENVAT on those input services cannot be claimed. (AI Summary)
Service tax on civil contracts must be shown in the contractor's bill with the contractor's registration number, and the payer may withhold the tax portion if the bill lacks these details. CENVAT credit for input services relating to construction/works contracts is available only when the constructed premises are used to render taxable output services; if the premises are used for renting, CENVAT on those input services cannot be claimed. (AI Summary)