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Cenvat on service rendered during redevlopment
Dear ALl,
Please guide me on the following:
A builder redevelops a slum for which he gets an FSI. He makes a temporary building which he provides for the slum developers to live in, till their flats in the redeveloped building are ready. He receives input services for the construction of this temporary building as final flats for slum developers. Can such CENVAT be availed?
Replies (5)
Dear Shraddha,
According to me, the credit should be allowed since the same is for providing the final output services
- Ankit
Dear Sir,
In that case, will the TDR received be taxable? and on what amount?
are you talking about the TDR consideration received from the builder??
Yes. Because according to Circular 151/2012 service of construction provided to the society / dwellers of slum is taxable w.e.f. 1.7.2012. If the same is taxable then CENVAT may be allowed, but in absence of the same, i.e. where it is not taxable, the officer may contend that to that extent, no CENVAT allowed where there in no immediate output service.
yes the same will be taxable in the hands of the builder as well.
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