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Input service tax credit on industrial civil construction

Yogesh M Prajapati (Jr. Exc. Accounts & Finance) (37 Points)

28 September 2015

We are a pvt ltd manufacturing company. We had given contract for to Develop factory building to one proprietorship firm. They have charged service tax on the work contact value after calculation of amendment. Please guide me can I take input credit of service tax charged by contractor.

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4 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 30 September 2015

The input service definition restricts the construction/ WC service in reagrd to foundations + construction of building or civil sturcture. Can be understood as new building.

However if it is for repair, renovation the credit could be available if building used for manufacture of dutiable goods or provding taxable services.

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 21 October 2015

Hello Madhukar Ji

Manufacturing company hire JCB for labeling the land for construction purpose from another person & that person charge service tax on his bill then canvat credit is available or not ??

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 22 October 2015

The restriction is only for the construction services. The JCB- tangible goods supply would be eligible for the credit.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 27 October 2015

Hello Madhukar Ji

Suppose JCB/LOADER are using during construction then cenvat credit is available or not ??
Case 1 : JCB/LOADER are provided by construction contractor.
Case 2 : JCB/LOADER are provided by another person.

Thanks