TaxTMI 
TaxTMI 
CAN A LEISURE/SOCIAL CLUB CHARGING SERVICE TAX ON MEMBERSHIP FEES /BUILDING FUND CAN CLAIM BENEFIT OF INPUT SERVICE TAX PAID ON WORK CONTRACT FOR CONSTRUCTION OF ITS BUILDING
INPUT ON WORK CONTRACT SERVICE TO CLUB
08 Jan 2015 
5 Replies 
2366 Views Asked by
Input service credit for work contract services is not available where output is membership or club services.
A club charging service tax on membership fees or building fund cannot claim input credit for service tax paid on work contract services for its building because the service portion of a work contract is excluded from the definition of input services under the Cenvat Credit Rules, 2004, and Cenvat credit on work contract services is allowable only when the output service is Work Contract Service or Construction Service. (AI Summary)
A club charging service tax on membership fees or building fund cannot claim input credit for service tax paid on work contract services for its building because the service portion of a work contract is excluded from the definition of input services under the Cenvat Credit Rules, 2004, and Cenvat credit on work contract services is allowable only when the output service is Work Contract Service or Construction Service. (AI Summary)