Service Tax credit on construction in factory premisis, Service Tax

[Bharat patel]

Dear sir

we are manufacturer of plastic film and sales to domestic and export.

now my question is new machinery import by my company and also we installed this machinery in our new building constructed on previous month.

building contractor charged service tax on new building.

above service tax credit eligible or not ?

please guide me

thanking you

Posts / Replies

[PAWAN KUMAR]

Dear Sir,

Service tax cenvat credit related to civil construction is not eligible for availing cenvat credit as per rule 2(l)(ii)(A) of CENVAT Credit Rules, 2004.

[Naveed S]

Yes sir, input service credit not admissible on building/civil construction.

[Pradeep Khatri]

Dear Bharat,

Since the phrase setting up of factory has been removed and on civil construction CENVAT credit is specifically excluded therefore no service tax credit would be available on such services to you.

Regards,

Sameer Malhotra - Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)