TaxTMI 
TaxTMI 
We are setting up new factory. I would like to know that can we take the service tax credit available during setting up of the factory,when we start the production for removal of taxable goods,from our factory? In other word, can we use for payment of CEVAT ?
Service Tax credit
02 Nov 2013 
3 Replies 
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Cenvat credit: input service credits allowed for manufacture but excluded for new factory construction, usable against tax liabilities.
Input services used in the manufacture of goods are generally eligible for Cenvat credit and, once eligible, may be utilised against service tax or excise duties; registration is required for claiming credit on capital goods, but services related to construction or setting up of a new factory are excluded from Cenvat credit under the Cenvat Credit Rules, 2004 as amended. (AI Summary)
Input services used in the manufacture of goods are generally eligible for Cenvat credit and, once eligible, may be utilised against service tax or excise duties; registration is required for claiming credit on capital goods, but services related to construction or setting up of a new factory are excluded from Cenvat credit under the Cenvat Credit Rules, 2004 as amended. (AI Summary)