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Service tax on construction work

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Querist : Anonymous

Querist : Anonymous (Querist)

12 November 2011 We are manufacture of forged & Turned Bearing Rings, we make a new plant so building & Construction work there. the supplier charges service tax on construction. Can we take credit on service tax amount ? which rules & notification ?

PUNEET GOYAL

PUNEET GOYAL (Expert)
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12 November 2011

1. Port Services [65 (105) (zn)]
2. Port Services in other port [65(105)(zzl)]
3. Air Port Services [65(105)(zzm)]
4. Commercial or Industrial Construction Services [65(105)(zzq)]
5. Construction of Complex Services [65(105)(zzzh)]
6. Works Contract Services [65(105)(zzzza)]
7. Architect’s Services [65 (105) (p)]
(p)]
If the above services are used for the
(a) construction 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
then these services shall not be considered as input services and accordingly CENVAT credit shall not be allowed. (See Rule 2(l) of CENVAT credit rules, 2011.)

In your case it appears that you can not take CENVAT credit because above specified services are used for construction etc.

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