Cenvat credit of excise duty and service tax, Service Tax

[PANKAJ SETHI]

we have paid excise duty ,service tax on the capital good ,input purcahsed . we are constructing a commercial complex (mall) , Are we entiteled to avail cenvat credit when ever our s tax liabilty will arise ,i e in future .

Posts / Replies

[sudhir V S]

Dear Mr. Pankaj Sethi, Under construction there are several options available. option I: 12.36% on full consideration - CENVAT credit on inputs, capital goods, input services admisable. Option II: 12.36% on service portion under 12/2003 - CENVAT credit on inputs and Capital goods admisable. Option III: 12.36% on 33% of the consideration under 1/2006 - NO CENVAT admisable. Option IV: 2.06% under works contract -CENVAT on capital goods & input services admisable. Hence if u chose for option I, the credit of inputs, input services and capital goods are always admisable

[Madhukar N Hiregange]

Sudhirs views are correct. The question maybe asked as to how the cement / steel can be used for provding the rental services. To avoid this possible hurdle, the contractor should charge on the gross amount 12.36% and he would be eligible for the credit as long as he is the consigneee of the goods. Buyer can reamin the mall owner.