Service tax input credit

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prabhakar

service

23 Points Posted on 25 May 2012

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

Replies (4)

Nitil Kr. Agarwala

Persuing CS

222 Points Posted on 25 May 2012

Yes,

In my opinion, service tax input credit may be adjusted with Service tax payable.

Prateek Agarwal

Sr. Executive - Finance & Accounts

1846 Points Posted on 26 May 2012

Yes, it can be used as cenvat credit.

Chetan

Officer

108 Points Posted on 26 May 2012

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 ...