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?

AI Summary

Polyprex Corp. debates service tax credit eligibility for painting services; audit team challenges, consultant suggests renovation claim. POLYPLEX CORPORATION LTD. inquired about the eligibility to claim service tax credit for painting, repair, and maintenance services provided by a contractor, with materials supplied by the company. The contractor charges a service tax of 12.36% for painting services related to factory walls, machinery, and office spaces. The company's audit team disallowed the credit, arguing that painting does not qualify as renovation or modernization. A response from a tax consultant suggested that these services could be considered renovation, allowing the company to claim the credit. Further detailed consultation was offered by the consulting team.