17 May 2013
Can Input credit of service tax paid for availing consultancy service for construction purpose be taken by treating it as consultancy service or input credit should not be taken by treating it as construction service? Provided the client is constructing a building for carrying his business.
20 May 2013
credit can be taken as input can be taken for any service used for business purpose... this service is for construction of building is clearly used for business and hence allowed. though service portion in 'Work contract service' or 'construction service' taken for construction of building will no be allowed unless you are provider of the same service, as per rule 2(l) of CCR.
though consultancy service taken for construction is allowed as credit.