Gen. Manager - Indirect Taxation
3451 Points
Joined October 2007
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CENVAT in relation to Construction Sector will not be allowed w.e.f. 01.04.2011:
The following services are excluded from CENVAT Credit
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Architect service
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Port services
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Other port services
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Airport services (sub clause zzm)
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Commercial or Industrial Construction Service
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Construction of Complex service
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Works Contract [65(105)(zzzza)]
Cenvat Credit will not be allowed if these services are used for
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construction of building or civil structure of a part thereof, or
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Laying of foundation or making structure for support of capital goods
However, Cenvat Credit will be allowed if these services are used for providing specified services mentioned above. For e.g. contractor who is liable to pay service tax under Commercial or Industrial Construction Service can take the credit on service received from the sub-contractor as well as architect
Further Exclusion of the services is only for construction of building or civil structure or part thereof.
It will not apply to other services like completion & finishing, repairs, renovation, maintenance etc taxable under Commercial or Industrial Construction Services.