TMI BlogService Tax credit availment on 70% of Works Contract Service related to constructionX X X X Extracts X X X X X X X X Extracts X X X X ..... 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 relating 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 E is allowed.( highlighted below) 2 (l) of Cenvat Credit Rules Input Service means any service---- (i) ------------------------ (ii)------------------------ [but excludes], - [(A) servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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 of foundation or making of structures for supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort 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 or 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Sir, Pl. examine in detail. Looking forward your response today or tomorrow. Thanks. - Service Tax credit availment on 70% of Works Contract Service related to construc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion - Query Started By: - SANDESH SHINDE Dated:- 29-4-2016 Service Tax - Got 2 Replies - Service 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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