Whether a Promoter can avail cenvat on Material?

592 views

Save Share

Join Us Follow Us Add as Source

Bivas Nag

Accounts Officer

265 Points Posted on 02 February 2011

Respected All Professionals,

I've some query regarding CENVAT credit on materials.

My present employer is a promoter and its prime business is developing new townships, flats and to sell various parties. For developing the same, can we avail cenvat credit on materials like cement, steel, sanitary wire, pipes etc. which is a major part for constructing of the same. In case any capital goods purchase, can we also take cenvat on those capital goods, please clarify.

Please give suitable suggestion with case law, if possible. my e-mail id is bivas_kumar @ yahoo.com

Bivas Nag

Mobile:098309-96667

Replies (2)

Pankaj Arora

Learner

3431 Points Posted on 02 February 2011

Input credit allowed of those services in business which is used for providing outward service.

DIVYANG GUPTA

Student

27 Points Posted on 02 February 2011

Dear,

if ur employer is providing any service on which he is charging service tax(output tax) then he can avil benefit of input tax paid on services availed by him DURING THE COURSE OF HIS BUSINESS.

but as info. given by u he sell new townships, flats and to sell various parties that no part in this business seen to be service provided so he can not avail cenvat of service tax paid in developing the same.

thanks & regards

DIVYANG GUPTA