Service tax query

Service tax is not chargable on capital goods, excise duty is chargable of capital goods, if any installation, commision is there and chargable service tax

You can avail 100% service tax input (accural basis, previously payment basis) on installation and commisonelse else 50% in first year and 50% in 2nd year.

In case by some reason you not avail input in 1st year you can take 100% in 2nd year also.

 

Any amount of service tax paid on erection and completion of a factory shed or as in the present case of warehouse shed will not be considered as input services and neither as capital goods in the amended definition of capital goods and input services as per rule 2 of CCR, 2004. Hence, you are not eligible for any CENVAT credit on any job of erection or construction of a capital asset. Please go through the provisions if you want, and act accordingly.

Dear Ajit Sir, it found in many of the cases that assessing office as well auditors allowed factory shed or temporiarly structure as an assets and allowe assessee to claim depreciation on such temporiarly assets.

Its true that when we claiming depreciation we can't claim input, do correct me if i am wrong in any part.

Yes you are correct, it is advisable to claim depreciation on the same and not CENVAT credit as it is specifically excluded from the definition of input services as per Rule 2 of CCR, 2004.

...i mean the erection value of warehouse shed.....

Why the service tax set-off should not be taken? when we can take excise duty set-off on capital asset?

 

In light of the amended definition of input services as per rule 2(l) of CCR, 2004, services in relation to erection of a civil structure is excluded from the said definition. Hence not allowed any CENVAT credit on the same.You might be availing it but w.e.f 01-07-2012 the same is not allowed.

1.A  Pvt. Ltd. Company is receiving  Land Lease Rent from Land given in 1980 on 99 years lease to a Co-operative Society  who had constructed Flats for it members.

Will you please tell us the position of service tax in the regard ?

2. Another Tading Pvt Ltd. who is paying its Directors salary , fees , travelling expenses , car and driver ,are its directors shall have to obtain registration under service tax. If  its building is rented one and paying service tax on rent , can it claim service tax paid to advocates and freight etc against service tax paid on rent.

Please advise.