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Credit of service tax on purchases of flat

sourav (articles) (37 Points)

17 December 2015

Sir, My query is. If a service provider company purchases a flat and paid service tax on it. and use the same flat as guest house and other pourpous. can the said company take the imput credit of service tax paid on that flat. sir if for reference there is any case study on said case then also suggest it to me.

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4 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 17 December 2015

There is a restriction on availment of credit of works contract/ construction service. Not available.

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CA Devika K ACA., (Chartered Accountant) (32 Points)
Replied 18 December 2015

Sir,

Is service tax paid on purchase of flat in the name of a Pvt. Ltd Co. Whether he can claim Service Tax Input Credit.

Regards,

V .Ramanathan

Ravi Soni (Executive in Corporate Advisory) (54 Points)
Replied 19 December 2015

Service portion of Works Contract/Construction Contract does not constitute "input service" as per Rule 2(l) of Cenvat Credit Rules, 2004. So any service tax paid on such service shall not be taken, eventhough the same is used by service provider to provide output service.

Therefore, Credit of Service Tax paid on purchase of flat will not be available.

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