Erection Commissioning & Installation in a plant being set-up, Service Tax

[Vinay Kunte]

Is the Cenvat Credit of Input service recceived in relation to the erection, installation & commissioning of machinery in a new factory being set up is available?

If yes, then is the credit available if the said service is part of the "works contract" given for the subject seting up of the plant in a taxable teritorry?.

Posts / Replies

[Madhukar N Hiregange]

The erection services would be eligible as input services as long as they are not relating to the service portion of construction or for laying foundation/ structures for support of capital goods.

This would be eligible even if it is a works contract as per the definition of input services.