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CENVAT - CONSUTRUCTON SERVICES - OTHER SERVICES

This query is : Resolved 

25 March 2009 WE ARE A SMALL FIRM CARRYING CONSTRUCTION SERVICES ALONG WITH ERECTIONING & COMMISSIONING SERVICES.

WE ALSO PROVIDE OTHER TAXABLE SERVICES LIKE ENG.CONSULTANCY, BUSINESS AUXILLARY SERVICES, RENTAL FRM IMMOVABLE PROPERTY ETC.

WE HAVE A LIST OF COMMON INPUT SERVICES USED FOR ALL THE ABOVE ACTIVITY.

WE AVAIL CENVAT ON INPUT SERVICE AS A COMMON POOL IN OUR ACCOUNTS .

WE PAY SERVICE TAX ON CONSTRUCTON ACTIVITY AFTER APPLYING THE RELATED DEDUCTION AS PER NOTIFICATION 01/2006 DT 1-3-06.

THE CONDITION TO APPLY THE ABATEMENT IS YOU CANNOT AVAIL CENVAT CREDIT FOR THE INPUT SERVICES USED FOR THE ACTIVITY.

WHETHER WE CAN AVAIL CENVAT ON INPUT SERVICES USED IN CONSTRUCTION ACTIVITY AND UTILISE IT FOR OUR OTHER TAXABLE SERVICE -TAX LIABILITY

25 March 2009 It will be better to separate goods part, and pay full service tax on service part.
The problem you are contemplating may arise anytime.


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