Avaliability of cenvat credit

Queries 702 views 1 replies

Dear Professional Colleages!

X Ltd ia a logistics company who constructs (by employing contractors) warehouses and godowns, for providing warehousing and logistics services (both Taxable and Exemted services) to its coutomers. The contractors appointed the for contruction of Godowns raised bills including service Tax (less abatement)  which are paid by X Ltd. The contractors bill is capatilized in the books of X Ltd and service Tax component thereon is treated as input credit.

 

Queries.

1) whether the construction of its own godown & warehouses by X Ltd amounts to input services? 

2) Whether the service Tax component of the Contractors bill should be treated as Input Services, or as Capital Goods.?

3) since the Warehouses are constructed for providing both Taxable and non Taxable (In case of agriculatural Produces) services, can the Cenvat credit on the same be availed in full?

 

awaiting the valued input on the above issues

   

 

Replies (1)

construction services do not qualify for cenvat credit from 01-04-2011 unless it relates to maintenence or repair.


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