Input Credit

This query is : Resolved

Ajay Agrawal (Querist)
Follow

03 October 2010 Hello,

I am consultant to a upcoming hotel. The company into hospitality business [HOTEL], PROVIDES VARIOUS SERVICES SUCH AS CATERING, BANQUET RENTING, BANQUET DECORATIONS AND SO ON. ALL SUCH SERVICES ARE TAXABLE UNDER SERVICE TAX.

Such Hotel, spends on Renting / Hiring of various professional, advertising, staffing, security and so on which provide services again Taxable (Service Tax), which can be taken as input credit.

The question is such hotel

"expanding or constructing rooms & banquets, from which it will be again doing the above stated business of providing services such as CATERING, BANQUET RENTING, BANQUET DECORATIONS AND SO ON.., the material procured for construction and decoration of such premises involve purchase of material such as steel, cement, tiles, furniture & so on, which are Exciseable goods, can the excise paid against such purchase be taken as input credit"

Kindly guide.