Service Tax credit availment on 70% of Works Contract Service related to construction

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..... Service Tax credit availment on 70% of Works Contract Service related to construction
Query (Issue) Started By: - SANDESH SHINDE Dated:- 29-4-2016 Last Reply Date:- 30-4-2016 Service Tax
Got 2 Replies
Service Tax
Dear Sir, We are a mfg co and registered under ISD,please advise us whether we can avail Service Tax Credit on charged 70% of value in case of Works contract Service relatin .....

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..... g to construction activities.Thanks & Regards. Reply By Ganeshan Kalyani: The Reply: Sir in my view service tax credit on construction is not eligible. Thanks. Reply By KASTURI SETHI: The Reply: Sh.Shinde Ji, I concur with the views of Sh.Ganeshan Kalyani, Sir. I add that input service credit for providing Service portion of WCS and construction services listed under clause (b) of Section 66 .....

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..... E is allowed.( highlighted below) 2 (l) of Cenvat Credit Rules Input Service means any service---- (i) ------------------------ (ii)------------------------ [but excludes], - [(A) 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 .....

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..... 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 of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or] SECTION 66 (E)(b) (b) construction of a complex, building, civil structure or a part thereof, including a complex o .....

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..... r building intended for sale to a buyer, wholly or partly, except where the entire consideration is received after issuance of completion-certificate by the competent authority. Input service credit on construction service/WCS is not allowed but input service credit for specified services used for providing construction services is allowed. e.g. GTA, architect service etc. Sh. Ganeshan Kalyani S .....

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..... ir, Pl. examine in detail. Looking forward your response today or tomorrow. Thanks.
Discussion Forum - Knowledge Sharing .....

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