Cenvat Credit of Service Tax

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Gurdeep Saini (Querist)
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17 July 2008 We are planning to expand our existing plant. My querry is CEnvat credit would be available to us for the followings:

1. Capital Goods Purchased
2. Civil construction material
3. Cenvat credit for service tax to be payable for Design Consultancy,Landscape consultancy and Project management consultancy.

Thanks in advance.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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18 July 2008 1.Yes, if used in manufacture.
2.No.
3.Please elaborate.

Gurdeep Saini

Gurdeep Saini (Querist)
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18 July 2008 Dear Mr. Srinivasraghavan,

Thanks a lot for your guidance.

Point no 3 - I would like to know whether Cenvat credit would be available for service tax on consultancy charges for expansion of project paid to design consultant, project management consultant.

I hope this would be clear now.

Kindly advice.

Thanks

Srinath

Srinath (Expert)
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24 August 2008 Yes entire CENVAT credit can be availed. The restriction on civil construction material is only when you are letting out the premises on rent. As per Board Circular 98/1/2008, credit under Commercial or Industrial Construction Service and Works Contract Service is not eligible as input tax credit if the construction of property is for renting. As long as documents are in our name, CENVAT credit is eligible.

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