TMI Blogservice tax credit eligible on construction drawings-regX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We are constructing one new paintshop for our company. For this we have received invoice towards drawings for construction of this paintshop. They have charged service tax on their invoice. Our question is whether the service tax paid on this invoice is eligible for service tax credit. Please clarify. Thanks S.Ramakrishnan - Reply By ganeshan kalyani - The Reply = The credit is elig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible - Reply By Rajagopalan Ranganathan - The Reply = Sir As per rule 2 (l) of CENVAT Credit Rules, 2004 input service means any service, - (i) used by a provider of output service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal. The above rule was inserted with effect from 1.4.2011 by notification no. 3/2011-CE(NT) dated 1.3.2011 Prior to 1.4.2011 the same rule was as follows: - input service means any service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,- (i) used by a provider of taxable service for providing an output service; or (ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and [4] [clearance of final products, up to the place of removal], and includes services used in relation to setting up , modernization, renovation or repairs of a factory, premises of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of inputs or capital goods and outward transportation up to the place of removal. Prior to 1.4.2011 credit of service tax paid services used for setting up of a factory or premises of output service provider was allowed as credit. But with effect from 1.4.2011 credit of allowable.service tax paid on services utilized for setting of factory or premises of output service provider is not allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. - Reply By Mahir S - The Reply = As you are constructing new paint shop, hence it means you had an old paint shop..Therefore, you are doing Modernization of the old plant. Hence in such case, it appears service tax credit is eligible. - service tax credit eligible on construction drawings-reg - Query Started By: - Ramakrishnan Seshadri Dated:- 1-10-2015 Service Tax - Got 3 Replies - Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvice Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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