Dear Sir,
We are maintaining a garden in our factory.
We are receiving service tax charged invoices for the garden maintenance work.
The service tax credit can be taken if the garden is maintained as per statutory requirement.
what is the statutory requirement for maintaining the garden in a factory.
The service tax charged on the garden maintenance is eligible for credit or not.
could any body reply for the same.
Thanks & Regards,
S.Ramakrshnan.
Eligibility of Service Tax Credit for Factory Garden Maintenance: Legal Perspectives and CENVAT Credit Rules, 2004 A query was raised about the eligibility of service tax credit for garden maintenance in a factory. Responses varied: one noted that prior to an amendment in 2011, such credits were admissible, but now it's challenging to claim them. Another indicated that if maintaining a garden is a statutory requirement under the Factory Act or state policy, credit may be availed, though it might lead to litigation. Others argued that service tax credit eligibility should align with the definition of input service under the CENVAT Credit Rules, 2004, and that it may not be eligible, advising against litigation for negligible amounts. A legal case was cited where credit was allowed for gardening services as they were deemed necessary by law for maintaining green cover and cleanliness in manufacturing premises. (AI Summary)
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