Service Tax Hotel, Service Tax

[kamal mall]

Dear Sir,

We are setting up a hotel/club for that we have constred a building and purchased huge plant/AC/Chiller etc. We will open this in October and will charge Service Tax and VAT as well. My query is that service tax amount which we r paying for Bulding/PM/interior is claimable as CENAVT against our future outgo of Service TAx.

Excise Duty paid on Machiery/freez/AC are claimable agaist furture Serice tax payment?

Advertisment and sales promotion charges paid before opening the Hotel ... ST paid on the same will claimable?

Posts / Replies

[Mahir S]

Sir,

No you cannot avail the Service tax credit on Building/PM/Interior/Advertisement and sales promotion charged before opening the hotel, as the word "Setting Up" of Factory Premises has been removed from the definition of Input Services.

Further, on civil structure no CENVAT is allowed.

[Keshav Murthy]

your are not eligible to claim cenvat credit of construction but your eligible to claim the Cenvat credit on Palnt/chiller which is used for storing the eatable products used in providing service.

[Manoj Agarwal]

Dear Sir,

Subject to certain conditions, in most of the case, cenvat credit is available to be adjusted against output service tax.

Regards,

Manoj Agarwal,

Service Tax Consultant,

+91-9937041788