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CENVAT CREDIT ON REPAIRS TO OFFICIAL BUILDINGS

Service Tax - Started By: - hardik thacker - Dated:- 23-11-2015 Last Replied Date:- 28-11-2015 - CENVAT CREDIT ON REPAIRS TO FACTORY BUILDINGS As per the definition of Input Service ( Rule 2(l) ), Input Service 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 and excludes service portion in the execution of a works contract and construction services including service l .....

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category of works contract service. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Rule 2 (l) of Cenvat Credit Rules, 2004 only excludes service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part  thereof; or (b) laying o .....

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a part thereof. Credit would be available only where the contract amounts to works contract and the contract is otherwise than for building or civil structure. The queriest has mentioned about cenvat credit on repairs to factory building which is not in line with the above para as depicted from the provision and therefore I am of the view that cenvat credit is not eligible. - Reply By Swapneswar muduli - The Reply = Dear Sir,In my view if your work is related to Original work that means purely .....

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e post. thus credit is not eligible. - Reply By Swapneswar muduli - The Reply = Dear kalyani Sir,Yes i am agree with you but work contract can be for repairs and also for new construction. So my opinion is if work contract for Repairs for building it is eligible If Work contract is for new conduction it is not eligible Please correct if i am wrong it should enrich my knowledge . - Reply By KASTURI SETHI - The Reply = Dear Hardik Thacker Ji, First of all we must know what is a factory. As per Sec .....

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lex having several buildings, where workers manufacture goods or operate machines processing one product into another. If we peruse both definitions in conjunction, it is very much clear that the term,'Factory' has wider meaning and it includes precincts (area of a building for manufacture of goods). Thus Rule 2(l) of the Credit Rules excludes the construction service/works contract service to a building and not to a factory. Hence Service Tax paid on works contract is eligible as input .....

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anks. - Reply By KASTURI SETHI - The Reply = Sh.Hardik Thacker Ji, Sh.Mariappan Govindarajan Ji, and Sh.Ganeshan Kalyani Ji, Welcome, Sirs. You have liked and appreciated my reply. It is a reward for me. I am of the view that reward is not always in terms of money. - Reply By Mahir S - The Reply = As per the exclusion clause of Rule 2 (l) of Input service definition, you are not eligible to avail the CENVAT Credit on repairs to factory buildings, when it comes under the category of Works contrac .....

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ipate in the discussion. by Simple reading of the definition the input credit is not allowed but on interpretation the credit is eligible. Mr. Hardik would be appreciate the contribution by experts and expect clarification. - Reply By KASTURI SETHI - The Reply = Dear Ganeshan Kalyani Ji, Our endeavour is to provide quality service to the assessee/querist in this forum. If any assessee or expert does not agree, we should not mind it at all. Everybody has right to express his/her opinion and knowl .....

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