Works Contract ---- Input Service Credit, Service Tax

[puneet virmani]

A is a contractor registered under works contract service. A sub contracts the part of the contract to B. B charged service tax from A on labour services provided to A . Can A gets the credit on input services provided to A by B. B is registered under manpower suplly agency as providing labour services to A.

Posts / Replies

[Amutha Balasubramanian]

Yes. There is no bar on availing credit of input services which are used in the course of execution of output service

[R.S. Mangal]

In case of Works Contract Services, the credit if Input service and Duty paid on Capital Goods can be availed but not of Input. Hence can take Cenvat of Service Tax charged by Sub- Contractor