Cenvat credit by a manufacturer of exciseable goods on intermediate services for construction of Building or civil structure after 01.07.2012, Service Tax

[Harishanker Patel]

as per rule 2(l)(A) of  CCR, 2004 service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the  Finance Act, (hereinafter referred as specified services) in so far as they are used for -

(a) Construction or execution of works contract of a building or a civil structure or a part thereof; or
(b) Laying of foundation or making of structures for support of capital goods,Except for the provision of one or more of the specified services are excluded in the defination.
So whether credit on other services eg manpower supply,hiring of JCB,Site preparation etc,used for Construction or execution of works contract of a building or a civil structure or a part thereof & Laying of foundation or making of structures for support of capital goods is available or not.

Posts / Replies

[Pradeep Khatri]

No CENVAT credit on Construction Service will be available to Manufacturer of Finished Goods.  The definition of goods has been amended since 01-04-2011 and the Cenvat Credit Rule, have been drastically amended in this regard.

You may avail the depreciation as allowed under the provisions (Section 32) of  Income Tax Act, 1961