Credit on Capital Goods

This query is : Resolved

Radhika (Querist)
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02 January 2009 A company manufactre its own Bulding & Recived Bills From professionals & Contractor on which service Tax Charged
My Q Is that

1. Bulding which is construted capital goods or not falling in chapter 82-90 traiff
2. can he take credit of this service tax on Rent (When construction Complete)or not

If it is Capital goods Credit 50% or Whole allowed Because construction complete in Next 2 year

Nirav Vora

Nirav Vora (Expert)
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02 January 2009 If Company gets building constructed through contractor for business use, such building will be capital goods covered under chapter 82-90.

The company can get credit of service tax paid as per CENVAT credit rules,2004.