Dear sirs
we are the manufacturers of the Electrical componants, we have constructed 4 floors building at industrial area, out of 4 floors, 2 floors are using for factory works and 2 floors for office purpose.
the above said building given for construction to outside builder , then the builder was claimed service tax and the same was paid the amount also.
in view of the above, can we take the service tax input credit to adjust against central excise liability.
with regards
R.Prabhakar
Yes,
In my opinion, service tax input credit may be adjusted with Service tax payable.
Yes, it can be used as cenvat credit.
Construction services – Architect service, Commercial or Industrial Construction service, Complex Construction service, Works Contract service
Before 1.4.2011, credit was available on these as services used in relation to setting up, modernization, renovation or repairs of a factory or an office relating to such factory.
After 1.4.2011, these services have been specifically mentioned in the negative list i.e. the list of services on which credit is not available
when such services are used for construction of a building or a civil structure or a part thereof or
when such services are used for laying of foundation or making of structures for support of capital goods
Moreover, the expression setting up has been deleted from the input service definition with effect from 1.4.2011..
SO YOU CANNOT UTILISE THE CREDIT ...
credit is not allowed......
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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