can u make more clear like construction work of office.can we avail credit in that case
 

Hi , We are into trading & SI as well, we have good amount of Imports every month & since we are SI ,there are good amount of service bill also . Can we write off Service tax amount against excise duty ? if yes please suggest what is the process in brief .

Is it necessary to registered with excise to claim the same . Please suggest .

Regards,

Bhandari

i wnt to ask , abt service tax credit availability on building ( Office or factory )construction work, With notification

Dear All,

    I had brought a flat in March 2007. The total cost of the flat is 31.25L. The Registration amount of the flat is 6.33L. I had paid a stamp duty of 48K +10K of VAT at the time of registration on 30 June 2007. Although Me and builder didn't enter into the work contract for the remaining amount of (24.92L), it is understood that the builder will be providing me the construction services, but the builder is asking me ST on 31.25 @ 2.08%.  

    Can somebody please guide me on what to do at this juncture.    

Thanks & Regards

Shashank

Dear sirs,

v have constructed one commercial building. The contract is given on labour basis, means material is bought by us . while buying material directly from mfg. co's, we have to pay the price including excise. In the same ready building, some protion is rented out and some is used by us for service industry.. v r getting the rent with service tax and our 100 % business income is also with service tax.. now the querry is - can v get benifit of excise, which v have paid during construction. or not.  and if yes then from any service businsess service ? - pls sort out fast as time is comming for submit it - tks

i want to know the method for apply service tax on construction , where work order not given by the awarder .

Certainly the construction services wouldbe available in full. The contractor can also charge the ST on the gross amount and avail the credits on excise duty on cement, steel, tiles, electrcial.etc
 

Whether a company can avail credit of service tax on Construction bill of Civil Works, Factory Building etc. . The contractor charges service tax @ 4% ON Value of total bill amount AS PER WORK CONTRACT. Whether we claim credit of service tax.

Dear Bansal,
 

The input services for setting up modernisation are available as input services specifically. Whether the contractor charges on 67% abatment or under compostion or under Not 12/2003 is immaterial. The fact that the factory is used for manufacture of excisable goods at least partially is an important pre requisite. If that is met there is an eligibility. I understand that there is a circular which casts doubts on the same. In this regards the settled law is that circulars cannot lay down the law they can clarifyu the law. In the case of Ratam Melting the constituion bench has laid down that circular not in line with the law are not valid in law. 

Dear,

As per the service tax we claim input on the service tax paid on the building. There is only specific notification for the no input on the service tax on good transport of service (same abatement procedure). so in the other cases we can take input.

Finally i am suggesting you can take input of the service tax paid on the building.

Dear Sirs,

We are doing  erection work for  few tower companies. They issued WO/PO  for Both Erection & Painitng.  So how much Service Tax shall I deduct as per service tax act Erection & Installation attracts 100%ST. But My vendor ask me to deduct 33%.

Pl.clarify which is correct.

Regards

Kumar 

Dear Sir,

The 67% of abatement matter is related to your contractor. He avails the benifit under notification no. 1/2006 dated 01.03.2006 (as amended) subject to the condition ' no cenvat credit on inputs, input services and capital goods should not be used'. And he is paying the service tax on 33% of the service value.

As far as you are concerned, you are the receipent of construction service in relation to your factory building, and the service covers under input service. Hence you can avail the CENVAT credit on the same. It is irrelevant to you that your contractor whether getting abatement benifit or not.