Become a Govt. Certified GST Practitioner in just 58 hours. Register Now!

Cenvat credit- construction service - eligibilty

satya (Executive Excise) (1839 Points)

30 August 2011

Dear Sir(s),

Kindly clarify clearly;

Cenvat Credit eligiblity on "Construction service of Commer-indus-building" for service receiptant.

Reply
Follow
Share

7 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 30 August 2011

if the assesee is not availing composition ( paying full rate of service tax), then only he is egilible for input credit,

if he is availing composition scheme then input credit is not available,

Upgrade to CAclubindia Pro. Subscribe Now!

satya (Executive Excise) (1839 Points)
Replied 30 August 2011

Dear Sir, We are not Service Provider sir,

we are the Service receivers, can we claim Cenvat Benefit on that Service?

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 30 August 2011

As per defnition of input service as it stands w.e.f.01-04-2011, construction service may not qualify for cenvat credit as it relates to setting up.

Tripti ( CA, MBA, CPA) (no) (132 Points)
Replied 30 August 2011

Its not eligible for Cenvat Credit..

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 31 August 2011

Originally posted by : sathya
	Dear Sir, We are not Service Provider sir, we are the Service receivers, can we claim Cenvat Benefit on that Service?

Buildings neither qualify for "capital goods" nor "input service" as per CCR 2004, hence the input credit inadmissible.

Upgrade to CAclubindia Pro. Subscribe Now!

ajay garg (SR. MANAGER ) (28 Points)
Replied 01 September 2011

Dear,

After Budget changes, w.e.f. 01.04.2011, serviec receipent under industrial/commercial construction serviec, no service tax is allowed but if above service is used for renovation, modification, addition purpose, serviec tax credit is allowed.

Regards

Ajay Garg

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 03 September 2011

The credit of construction service is available only for modernisation, expansion, reapir etc. fpor the service reciver as per the amended rules of 2011.