Input of service tax paid on purchase of immmovable property

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Neeraj Joshi (Querist)
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02 January 2013 One of my Client has purchased a property(office) from a builder and he has paid service tax on it, now i want to know whether he can avail that service tax as input on not?

He is in the business of consultancy.

Kaushik Vinod

Kaushik Vinod (Expert)
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04 January 2013 Hi Neeraj,

As per Rule 2(l) of CCR,2004 the excluding part of the definition your client can not avail the credit of Service tax charged by the builder.

Excluding Part for your reference :
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 (hereinafter 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; or]

Thanks

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