https://www.taxtmi.com/forum/issue?id=3836 Service tax on a completed works contract must be determined by bifurcating the contract price into material and labour: service tax applies only to the labour/service component and VAT applies to materials; service tax paid on advances is to be adjusted against the final service tax liability and any shortfall paid on invoicing. Cenvat credit is admissible for input services only, not for input goods. If material and labour cannot be reliably separated, the contract value is taxed under the composition mechanism with no cenvat credit, and earlier advance payments are adjusted against that liability. en-us Tue, 21 Feb 2012 16:28:17 +0530 Thu, 23 Jan 2025 15:58:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=3836 Service tax on a completed works contract must be determined by bifurcating the contract price into material and labour: service tax applies only to the labour/service component and VAT applies to materials; service tax paid on advances is to be adjusted against the final service tax liability and any shortfall paid on invoicing. Cenvat credit is admissible for input services only, not for input goods. If material and labour cannot be reliably separated, the contract value is taxed under the composition mechanism with no cenvat credit, and earlier advance payments are adjusted against that liability. Discussion-Forum Service Tax Tue, 21 Feb 2012 16:28:17 +0530 https://www.taxtmi.com/forum/issue?id=3836