17 April 2014
My client charges service tax on renting on Immovable properties. Is he eligible to take CENVAT credit of service tax payments made to Builders for under construction properties purchased by him ??
17 April 2014
As per my view with reference to the defination of input services under Rule 2(l) of CCR 2004 cenvat credit of servicetax paid for under construction property is not admissible . therefore you cannot take the credit of service tax paid to bilder while paying service tax on renting service.
17 April 2014
Relevant clause of Rule 2(l) of CCR but excludes services, -
(A)service portion in the execution of works contracts and construction services including services 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 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, except for the provision of one or more of the specified services; or
CAclubindia
