INPUT ON WORK CONTRACT SERVICE TO CLUB, Service Tax

[deepak gulati]

CAN A LEISURE/SOCIAL CLUB CHARGING SERVICE TAX ON MEMBERSHIP FEES /BUILDING FUND CAN CLAIM BENEFIT OF INPUT SERVICE TAX PAID ON WORK CONTRACT FOR CONSTRUCTION OF ITS BUILDING

Posts / Replies

[Naveed S]

Sir,

In your case, Input service credit is not admissible for construction or execution of works contract of a building or a civil structure or a part thereof.

[PAWAN KUMAR]

Dear Sir,

No, service tax paid on the service portion execution in a work contract is in exclusive part of the definition of input services under rule 2(l) of Cenvat Credit Rules, 2004 , Therefore Cenvat credit will not be admissible of such service tax paid.

[deepak gulati]

WE ARE RECEIVING BUILDING FUND FROM OUR MEMBER AND CHARGED SERVICE TAX ON THE SAME. CAN WE TAKE INPUT CREDIT OF WORK CONTRACT , AS WORK CONTRACT SERVICE ARE USED FOR PROVIDING CONTRACTION SERVICES TO OUR MEMBER.

[Naveed S]

Sir,

Cenvat credit on Work Contract Service is admissible only if output service is Work Contract Service or Construction Service.

Hence in your case, such credit is not admissible.

[MARIAPPAN GOVINDARAJAN]

I agree with the views of experts.