Cenvat on construction services

Save Share

This query is : Resolved

Karan Khatri (Querist)

08 January 2016 If a builder is providing construction services. It has input services on Works Contract. So can CENVAT Credit be taken of Works Contract against Construction Services? Kindly also provide me with some reference.

Urgent Reply Please

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 January 2016 Cenvat credit can be taken on input services on works contract for providing out put construction services.
You can refer cenvat credit rules.

Karan Khatri

Karan Khatri (Querist)

08 January 2016 But as given in Rule 2(l) of Cenvat Credit Rules -
Inpur Service excludes services - service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (herein after referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods - except for the provision of one or more of the specified services.

Kindly clarify in the same as in the same it is not a input service and therefore cenvat cannot be availed.

CA. Divyansh Agarwal

CA. Divyansh Agarwal (Expert)

08 January 2016 U have rightly quoted the definition but in words except for provision for one or more services includes subcontracting services hence builder can take the cenvat of same however If he is claiming abatement then CCR of input goods not allowed

Karan Khatri

Karan Khatri (Querist)

08 January 2016 Thank you very much. I also realised later the word 'except' - it was like hidden for me. Thank you once again.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now