CENVAT and VAT credit on construction material

Hi,

my question is whether the CENVAT and VAT credit is available on Building construction material (Like, CEMENT, steel etc.) . We are in manufacturing unit.

Department is denying the credit on the ground that as they were not input material for producing the final excisable product you can not avail the credit on the same.

Request you to give your views on the same and if possible, plz provide the Rule or notification or case reference for the same.

Replies (6)

In my opinion the final product which is produced by the construction ( say for eg: a building) is not movable and not considered goods.... hence not excisable.

So there is no question of taking cenvat credit on the inputs.

CA Salman. 09339703400

As per Govt notifiaction VAT on sale of flat is also applicable now, then why set off  on VAT paid on purchase of building materials  is not to be considered.

VAT is not applicable.... service tax is applicableon sale of flats.

We are rice exporter and constructing new building and going to erect new plant and machinery. I just want to know that will we be given a credit of input tax on building material for construction and plant & machinery.

And plz also give me list of fixed assets on which vat input can be availed.

Cenvat Credit can be availed on input goods, input services and on capital goods provided they fall under chapter heading as mentioned under Cenvat Credit Rules, 2004.

It depends on whether you can avail cenvat credit of service tax paid on input services. Refer Rule 6(5) of CCR, 2004.

DEAR DHAWAL,

WE ARE IN CEMENT MANUFACTURING INDUSTRY, IN OUR INDUSTRY CENVAT IS AVAILABLE FOR CIVIL STRUCTE FOR SILO AND PRE HEATER TOWER.

I DO NOT IN WHICH INDUSRTY ARE YOU.

PL SEND MAIL ON vijay.agrawal @ acccement.com

let find some solution.

 

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