Availment of service tax credit on construction of building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 May 2012 Dear All,

I got query on service tax in our company regarding availment of cenvat credit on construction bills.

Queiries

1. We have done construction at our unit i.e expansion has been taken place and we got 2 units for which 2 diiferent contractors were employed both of them has billed us in different manners one contractors has charged service tax @12.36% and other contractors is covered under composition scheme and has charged @4.99%.

2.Can we avail cenvat credit on both the bills or not?

Regards.

R.k
Bcom,CS,ICWA

Rajnikant Vadigoppula

Rajnikant Vadigoppula (Expert)
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05 May 2012 u cannot avail cenvat credit on composition scheme.other one can be claimed.

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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05 May 2012 As per my opinion w.e.f. 01.04.2011 after change in definition of input service credit on both the above case of construction and works contract is not available

THis provision is applicable to some 7 specific services

Exception: if Input and output service is same. E.g. that is if construction iservice is used for providing the construction service only then credit is available.

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