Service Tax on works contracts

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....ervice Tax on works contracts<br> Query (Issue) Started By: - Pradeep Jain Dated:- 4-9-2015 Last Reply Date:- 7-9-2015 Service Tax<br>Got 2 Replies<br>Service Tax<br>Sir, In case of Work Contract of repairs and maintenance , need to pay service tax on 70% value of the contract and ST on 30% value of the service. However do we need to reverse the CENVAT credit of inputs used in providing the serv....

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....ice on the remainin 30 % value of the Goods as above, used in that services. Regards Pradeep Jain Reply By KASTURI SETHI: The Reply: As per Explanation 2 of Rule 2 A of Service Tax Determination of value of service portion in execution of works contract (Notification No.24/12-ST dated 6.6.12) Cenvat Credit cannot be taken. Therefore, question of reversal credit on remaining value of 30% of goo....

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....ds does not arise. Reply By yateen vyas: The Reply: Credit cant be taken in service portion of works contract if it is used for :- (a) Construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services Construction o....

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....r execution of works contract of a building or a civil structure or a part thereof; or If it is used for repair and maintenance of machine which is further used in manufacturing of exciseble goods than why cenvat will not allowed in my view it will be allowed.<br> Discussion Forum - Knowledge Sharing ....