TMI BlogConstruction of new factory and input service tax creditX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sirs / Madam We are an export unit going for expansion of factory building the construction contract is given to a builder Builder is charging service tax @ 40% of the construction value @14.5% Question : whether this service tax credit can be taken as input credit of other out put services performed within India if not , whether we can apply for refund against the export to be made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of the new factory Kindly give your views With regards - Reply By YAGAY AND SUN - The Reply = Dear G ovindaraj Kolappan The phrase Setting Up of Factory had been removed long back w.e.f. 2011 from the CENVAT Credit Rules, 2004 as amended from time to time. Hence, no refund or CENVAT credit on such services would be available. This will form the part of CIVIL Construction and on Gros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s value on depreciation would be available under section 32 of the Income tax Act . Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By MARIAPPAN GOVINDARAJAN - The Reply = You cannot take credit and also cannot get refund as opined by Yagay and Sun. - Reply By CS RAHUL AGARWAL - The Reply = Whereas CCR 2004 restricts the cenvat credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f input input services used in construction activity, still there as so many judgements wherein appellate authority have held eligibility of credit of construction activity. The recent case on above may be referred in 2016 (2) TMI 417 - CESTAT MUMBAI Nirlon Ltd. Versus Commissioner of Central Excise, Mumbai. What significance does exclusion clause in CCR have in light of such judgements ? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Reply By KASTURI SETHI - The Reply = Despite this judgement of CESTAT,Mumbai availment of credit on this issue is prone to litigation. I endorse the views of M/s.YAGAY AND SUN, Sirs and SH.MARIAPPAN GOVINDARAJAN, Sir. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = Please see the disputed period in the case law cited by CS Rahul Agarwal is between April 2007 to March 2009. - Reply By KAST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... URI SETHI - The Reply = SH.MARIAPPAN GOVINDARAJAN JI, Yes, Sir. Period is always very crucial. Moreover, facts and circumstances of each are not always the same. Mostly these differ and one has to be very careful and alert while apply any judgment. - Reply By Ganeshan Kalyani - The Reply = Works contract service is a favourite subject for the department. They attack the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id service first when they come for audit. Of course the amount involved is considerably high which attracts the attention of the auditor. Hence it is always advisable not to take credit when it is not defined in the Cenvat credit rules. Thanks. - Construction of new factory and input service tax credit - Query Started By: - govindaraj kolappan Dated:- 21-2-2016 Service Tax - Got 7 Replies - Ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice 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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