Service tax cenvet

Company has busines of Restaurant has given contract for renovation of newly leased premises( lease period is 5yrs) of Rs.500,000/- same Amount was capitalised and depreciated over period of lease.

Company has paid ST of Rs. 24500/- to the contractor (abatment @ 30%) and also paid ST of Rs. 24500/- under RCM (after abatment value)

Now My query is

Can company Claim Cenvet of ST paid to contractor & RCM paid as per rule ? on such capitalised assets of renovation expenses.

Also give rule or section for avail of cenvet. and give supporting case laws

Thanks in Advance

CA RAJESH CHHEDA

Replies (1)
Yes, company is eligible to avail cenvat credit on renovation service as it is mentioned in inclusion part of definition of input service in rule 2(I).

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