CENVAT CREDIT ON REPAIRS TO FACTORY BUILDINGS

[THESINGARENI COLLIERIESCOLTD]

As per the definition of Input Service ( Rule 2(l) ), Input Service includes 'services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises'

and excludes 'service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part  thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services;'

from the above, 1. Can we avail the CENVAT credit on repairs to factory buildings which may comes under the category of works contract service.

CA V S Krishna Mohan V

AI Summary

Company Queries CENVAT Credit Eligibility for Factory Repairs; Rule 2(l) Limits Works Contract Services Credit A discussion on a forum involved a query by a company regarding the eligibility of availing CENVAT credit for repairs to factory buildings under the category of works contract services. The consensus among the respondents was that, according to Rule 2(l) of the Input Service definition, CENVAT credit is not available for services categorized as works contracts. However, services used exclusively for repair activities, not falling under works contracts, may be eligible for CENVAT credit. The discussion highlighted the exclusion of works contract services from the definition of input services unless used for specified services.