OVat & Service Tax on Civil Work (Foundation for machines), VAT + CST

[Bhalchandra Ramdasi]

Respected Sir,

 

We have to do Civil work i.e. foundation for machines for our customer in Orisa. We would like to know :

Whether can we or our customer avail Credit of Input services, input material and Vat Set off ?

Thanks,

Posts / Replies

[Pradeep Khatri]

From 01-04-2011, CENVAT credit on lying the foudation for capital goods are not allowed.  Even, VAT set up under OVAT Act will not available.

You would have to capitalised the civil work and will have to avail depreciation according to Income Tax Act.