Cenvat credit on input services in real estate industries

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pradeep sharma (Querist)
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21 September 2013 CAN WE TAKE INPUT SERVICE CREDIT RECEIVED BY THE CONTRACTOR, ARCHITECT , PROFESSIONALS IN REAL ESTATE CONSTRUCTION COMPANY FOR PAID SERVICE TAX @ 3.09% ON ADVANCE AMOUNT RECEIVED FROM CUSTOMERS.

CA Suresh Jain

CA Suresh Jain (Expert)
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22 September 2013 Yes, you can take credit if you have not availed abatement under notification 26/2012

disclaimer- all answers are given as per the facts narrated by you. Answer may differ after study of full facts/statements/agreements etc. involved in the case

CA Kintal Shah

CA Kintal Shah (Expert)
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23 September 2013 But when you talk about 3.09% ST that means you are taking benefit of Not 26/2012 (75% abatement). you can not claim input credit of any nature.

For taking input credit you need to charge ST @12.36% to your customer and then you set off all credit and pay balance ST. (This in any way not advisable)

Pratik Bhansali

Pratik Bhansali (Expert)
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09 November 2013 As understood your query is whether you can take credit of input services when you are availing abatement and paying taxes at 3.09%/3.71%.

Notification 26/2012 restricts CENVAT credit only for inputs. You can avail credit for imput services and capital goods w.e.f. 1st July 2012 even though you are claiming abatement. Prior to 1st July 2012 you were not allowed to take cenvat credit along with abatement.

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CA Kintal Shah

CA Kintal Shah (Expert)
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09 November 2013 yes pratik you are right. it has talks about only input. so input services and capital goods credit is available.
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