SERVICE TAX CREDIT ON CONSTRUCTION OF BUILDING

Whether a company can avail credit of service tax on Construction bill of Factory Building. The contractor charges service tax 12.36% on 33% value of total bill amount. ( after availing 67% abatement). Whether we claim credit of service tax.

Replies (48)
of course u can claim the credit of service tax charged.
Whether any notfification regarding claiming credit on capital expenditure incurred by manfacuter.
i think u cant claim the credit, as there isnt any double taxation and u cant use building as an input for the final material. double taxation is the key point for availing credit
helloooo the concept of double taxation does not arise at all. this credit can also be set off against excise duty also as per cenvat credit rules 2004
yes you can take
service credit can be claimed not avilable under excise reson it is a immovable goods.
cenvat credit not avilable under excise law because construction included in service tax purview.therefore service tax credit can be claimed.
cenvat credit
You can claim the Cenvat Credit of the service tax charged by civil contractor on construction of factory building (33% of contract Value). As per Rule 2 (l) of the Cenvat Credit Rules,2004 Input Service includes services used in relation to setting up, modernization, renovation or repair of a factory, premises of provider of output service or an office relating to such factory or premises.....
No he cant avail. He should charge ST on the full amount of bill. But he take input credit like CENVAT paid(Excise duty) on any materials and ST paid on any services.
yes, you can claim the credit.
under cenvat credit rules input services includes services used in relation to setting up, modernization, renovation or repairs of a factory. Input services can be set off against excise duty payable. Hence, Cliam will be available
Hi Dinesh, Thank for reply, but my question is whether we can avail service tax credit in case of abatement of 67% . Whether any condtion is or not like transporter.
you can't claim for service tax . you are already get 67% abatment .

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