Credit of service tax on purchases of flat

There is a restriction on availment of credit of works contract/ construction service. Not available.

Sir,

Is service tax paid on purchase of flat in the name of a Pvt. Ltd Co. Whether he can claim Service Tax Input Credit.

Regards,

V .Ramanathan

Service portion of Works Contract/Construction Contract does not constitute "input service" as per Rule 2(l) of Cenvat Credit Rules, 2004. So any service tax paid on such service shall not be taken, eventhough the same is used by service provider to provide output service.

Therefore, Credit of Service Tax paid on purchase of flat will not be available.

Thankyou sir for your nice suggetion.