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Input service tax credit on construction or renovation servi

satya (Executive Excise) (1839 Points)

31 January 2012

Dear Experts,

Kinldy solve my below doubts;

1) Service Tax paid on Construction service in the related to Manufacturing activity Buildings?

2) If the above service rendered for Admin or Commercial building which are not related to Plant (Mfr activity)?

3) If above service not for New construction, only for Repairs or Renovation, then Eligibility?

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2 Replies

satya (Executive Excise) (1839 Points)
Replied 07 February 2012

Please respond someone.

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Dayal (Gen. Manager - Indirect Taxation) (3434 Points)
Replied 07 February 2012

CENVAT in relation to Construction Sector will not be allowed w.e.f. 01.04.2011:

The following services are excluded from CENVAT Credit

Architect service
Port services
Other port services
Airport services (sub clause zzm)
Commercial or Industrial Construction Service
Construction of Complex service
Works Contract [65(105)(zzzza)]

Cenvat Credit will not be allowed if these services are used for

construction of building or civil structure of a part thereof, or
Laying of foundation or making structure for support of capital goods

However, Cenvat Credit will be allowed if these services are used for providing specified services mentioned above. For e.g. contractor who is liable to pay service tax under Commercial or Industrial Construction Service can take the credit on service received from the sub-contractor as well as architect

Further Exclusion of the services is only for construction of building or civil structure or part thereof.

It will not apply to other services like completion & finishing, repairs, renovation, maintenance etc taxable under Commercial or Industrial Construction Services.