Cenvat credit

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SAMIR SHAH (Querist)
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22 June 2013 is service tax paid to interior designers & contractors for designing office and making furniture claimable as cenvat credit. pls reply urgent

CA. C V SURYAM

CA. C V SURYAM (Expert)
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23 June 2013 Even though your output service is taxable rendering from that office building but these services are not used in providing output service by you but related to office building which is a capital asset. The definition for Capital Goods u/r 2(a) of CCR, 2004 does not cover office building. Hence, cenvat credit is not admissible either as input service category or under capital goods in your case.

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SAMIR SHAH

SAMIR SHAH (Querist)
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24 June 2013 thanks,

1.if the amount is paid to interior designer for furniture.
2. labour charges paid to contractor for making furniture.
the assessee is a clearing & forwarding agent.

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Pradeep Nainawati

Pradeep Nainawati (Expert)
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05 July 2013 According to my point of view your assessee can avail CENVAT Credit. The service used in relation to renovations or repairs of premises of service provider than the same is coming under the definition of "Input Services" (Rule 2(l) of CENVAT Credit Rules 2004.

SAMIR SHAH

SAMIR SHAH (Querist)
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06 July 2013 since there are two different opinion i would request other seniors also to check the issue

Asha Kanta Sharma

Asha Kanta Sharma

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19 July 2024 Service tax paid to interior designers and contractors for designing office space and making furniture generally qualifies for Cenvat credit, provided certain conditions are met. Here’s a breakdown:

1. **Nature of Service:** Service tax paid on input services like interior decoration, designing, or construction services used for the office space is eligible for Cenvat credit. This includes services such as architectural services, interior decoration services, consultancy services related to interior designing, etc.

2. **Used in Business:** The services must be used for providing output services or for manufacturing of final products. In your case, if the office space is used for providing taxable services or for business activities, Cenvat credit can typically be claimed.

3. **Specific Exclusions:** There are certain exclusions under Cenvat Credit Rules, 2004, such as construction of a building or civil structure or any part thereof that is used primarily for personal use or consumption of any employee. However, if the office space is used for business purposes, this exclusion should not apply.

4. **Documentation:** Ensure that proper invoices and documents reflecting payment of service tax are available. These should clearly indicate the nature of services provided, the service tax charged, and your company’s details.

5. **Time Limit:** Cenvat credit can generally be claimed in the same financial year in which the services are received and the service tax is paid, or at a later date as per the Cenvat Credit Rules.

6. **Audit and Compliance:** It’s crucial to maintain proper records and comply with auditing requirements to substantiate the claim for Cenvat credit.

In conclusion, service tax paid to interior designers and contractors for designing office spaces and making furniture is claimable as Cenvat credit, assuming the services are used for business purposes. However, it’s advisable to verify specific details with your tax advisor or Chartered Accountant to ensure compliance with the Cenvat Credit Rules and other relevant regulations.