Painting Services, Service Tax

[POLYPLEX CORPORATION LTD.]

Dear Expert

We are receiving Painting, Repair & Maintenance Service from an individual contractor having threshold limit above 10,00,000. we are supplying all the materials like paints, cement, bricks etc.

he is paying service tax at the rate of 12.36 percent & this painting relates to Painting of factory walls, machinery, godown, office etc.,

we are taking Credit of these services in our books. but the audit team disallows it, Acc. to them painting services is not under renovation and modernization.

Is Audit team points is right

can we take credit of this service?

Posts / Replies

[Pradeep Khatri]

Dear Sir/Ma'am,

In our opinion, it would tantamount to renovation services and credit would be available to you.

Please contact us, if you need a detailed opinion in this matter.

We remain.

Team YAGAY & SUN

(Management and Indirect Tax Consultants)