Cenvat credit on works contract services

1427 views 2 replies

Greeshma

Chartered Accountant

37 Points Joined June 2009

Hi, Can anyone please tell me if an assessee engaged in manufacture is eligible to avail cenvat credit on service tax paid for Works contract services used for the following :

Construction of factory sheds or buildings
Painting of factory building. flooring of the factory
Construciton/ Repairs to Administrative office building situated inside the factory premises etc

If the answer is no, then please specify the effective date since when the credit is ineligble.

Replies (2)

Arun Kumar Singh

GST Advocate

15220 Points Joined January 2009

Not eligible if used for construction of a building or a civil structure or a part thereof, or laying of foundation or making of structures for support of capital goods. If the service is used for other purposes, e.g. finishing services, repair, alteration or restoration, these should be eligible.

karan jit singh

Consultant

1299 Points Joined November 2010

Accordin to CCR 2004 , rule 2 (l) constructionn of factory sheds or building are not eligible input services. Painting , flooring , repairs shall be regarded as modernisation renovation, repairs of a factory or office , which is allowed. Regards Karan