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Service Tax - Works Contracts for Setting up of Petroleum Refinery
- Service Tax - Works Contract Service - Sub-clause (zzzza) of Clause (105) of Section 65 – Work Contract for setting up of petroleum refinery
- The Contractor opted to pay Service Tax on the Works Contract Service @ 4% of the gross amount under Rule 3 (1) of the Works Contract Composition instead of paying Service Tax at the normal rate of 10%
- Department claims that CENVAT credit of inputs is not admissible in the case of payment of Service Tax under Composition Scheme because the service provider cannot avail of both the benefits - recovery of the inadmissible CENVAT credit availed of by the Appellant
- HELD - When Contractor have opted payment of service tax under the Composite Scheme, they are not entitled to the credit of inputs.