Amendment to Circular No. 96/7/2007-ST dated the 23rd August, 2007 - Clarification in respect of renting of immovable property service and works contract service

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....oners of Central Excise (All) Commissioners of Central Excise & Customs (All) Sub: Amendment to Circular No. 96/7/2007-ST dated the 23rd August, 2007 - Clarification in respect of renting of immovable property service and works contract service - Regarding. In the Circular No.96/7/2007-ST dated the 23rd August, 2007,- (i) after Reference Code 086.05 / 23.08.07, the following Reference Code and corresponding issue and clarification shall be inserted, namely:- Reference Code Issue Clarification (1) (2) (3) 096.01 / 04.01.08 Commercial or industrial construction service [section 65(105)(zzq)] or works contract service [section 65(105)(zzzza)] is used for construction of an immovable property. Renting of an immovable property is le....

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....o VAT / sales tax [Rule 2A of the Service Tax (Determination of Value) Rules, 2006]. Whether or not, excise duty paid on goods, subjected to levy of VAT / sales tax under works contract service, can be taken as credit under the CENVAT Credit Rules, 2004. Value for the purposes of levy of service tax under works contract service does not include the value pertaining to transfer of property in goods involved in the execution of a works contract leviable to VAT / sales tax. Works contract service provider is, therefore, not eligible to take credit of excise duty paid on such goods involved in the execution of works contract. 097.03 / 04.01.08 Services provided in relation to execution of works contract is leviable to service tax w.e.f. 01.....