There is a stepladder in factory. We neeed to repair it. Some portion of Step ladder will be removed. New fabrication work is also there.
Vendor will be raising Work contract bill. He will be charging Service tax of 14.5% on 50% of 70% of bill.
Can we take Cenvat credit of that service tax.?In input service definition under specific inclusion they are saying "services used in relation to modernization, renovation or repairs of a factory or an office relating to such factory or premises" At the same time in Exclusion portion "service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for -(a) construction or execution of works contract of a building or a civil structure or a part thereof; or(b) laying of foundation or making of structures for support of capital goods".What is the correct line of difference between these two-Inclusion and exclusion?
Sivaraman
CAclubindia
