Painting Services

[POLYPLEX CORPORATIONLTD]

Dear Expert

We are receiving Painting, Repair & Maintenance Service from an individual contractor having threshold limit above 10,00,000. we are supplying all the materials like paints, cement, bricks etc.

he is paying service tax at the rate of 12.36 percent & this painting relates to Painting of factory walls, machinery, godown, office etc.,

we are taking Credit of these services in our books. but the audit team disallows it, Acc. to them painting services is not under renovation and modernization.

Is Audit team points is right

can we take credit of this service?

[YAGAY andSUN]

Dear Sir/Ma'am,

In our opinion, it would tantamount to renovation services and credit would be available to you.

Please contact us, if you need a detailed opinion in this matter.

We remain.

Team YAGAY & SUN

(Management and Indirect Tax Consultants)

AI Summary

Input tax credit on painting services: adviser opines credit allowable as renovation services despite auditor's challenge. Whether input tax credit is available where a recipient supplies materials and engages an individual contractor for painting, repair and maintenance of factory premises and equipment, the contractor charges service tax, and the audit team disallows credit claiming the work is not renovation; the tax adviser opined that the work would amount to renovation services and that input tax credit would be available.