Service tax on construction bill of building , Service Tax

[Dev Bhushan Jain]

Our Company is mfg co. We are setting up a new unit at Tronica City . We are claiming Service tax on construction bill of building for payment of excise duty. Our assessing officer deny it. He told you can take service tax credit on renovation of factory , not on construction of factory. Please tell with supporting document. Thanks in advance. Ca. Bijender Bansal

Posts / Replies

[Rama Krishana]

You must show the basic definition of input services as per rule 2(l) of the Cenvat Credit Rules, 2004 which allows credit of service tax paid on input services which are used in relation to setting up of a factory. The construction of a factory premises is nothing but setting up a factory. So go ahead.