TaxTMI 
TaxTMI 
Dear Experts,
pl let me know about CENVAT credit eligibale or not on " Design Service" provided to manufacturer, for the purpose of Design of Structure of New plant.
Regards
Rakesh K Paliwal
CENVAT Credit on Design Services
22 Jan 2014 
4 Replies 
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CENVAT credit restriction: design services for plant setup may be ineligible when plant setting activities are excluded.
Availability of CENVAT credit for design services used in designing a new plant depends on whether such services are within the Input Service definition or fall under the exclusion for setting up a plant; one view treats design services as eligible input services, while another relies on a regulatory amendment excluding plant setup from eligibility, arguing manufacturers cannot claim credit for design services related to setting up, though work contract or construction service providers may claim credit. (AI Summary)
Availability of CENVAT credit for design services used in designing a new plant depends on whether such services are within the Input Service definition or fall under the exclusion for setting up a plant; one view treats design services as eligible input services, while another relies on a regulatory amendment excluding plant setup from eligibility, arguing manufacturers cannot claim credit for design services related to setting up, though work contract or construction service providers may claim credit. (AI Summary)