05 November 2011
Facts : • Assessee is a association registered under (Mandap keeper Service and Membership of Club ) category with service tax dept. • Assessee regularly collect annual membership charges and paid s.tax accordingly. • Assessee is now started club project to provide various club facilities like movie theatre,restaurant,gymnesium ,swimming pool etc for which seprate club building is under construction . • Assessee is paying to various work agencies towards construction work ,some charged 10.30% of s.tax and some charged 4.12% of s.tax being works contract.
• As per amendment in Cenvat credit rule (effective from 1-4-2011) definition of input service is changed and it excludes some services (architect services, port services, works contract service etc) in so far as they are used for (a)construction of a building or civil structure or a part thereof (b)laying of foundation or making of structures for support of capital goods.
Queries: 1. Is assessee is entitled to take credit of s.tax paid on the architect serivce and works contract service against service tax collected on new membership fees after amendment in cenvat credit rules as above.? 2. What is the meaning of construction of building for these purposes? If service of architect is taken for whole project including lawn area, swimming pool other than building then Cenvat is available for such portions other than building?
07 November 2011
1. It is specifically excluding from the definition of input services. Therefore you can not take the cenvat credit in respect of specified services (i.e works contract,architect services etc)
2. Here construction of building neither defined under the above rules nor clarified by any circular. Therefore we sud take its natural meaning. Construction of lawn area, swimming pool will be covered under construction of building bcoz in balance sheet it will be included in the value of building.
CAclubindia
