TaxTMI 
TaxTMI 
We have a 5 star hotel being constructed at Goa. We receive services from professional and architects both domestic and abroad. As of now, there are no output services. Can we take the input credit of the service tax payable on these payments and settle it during the actual payment. Is there any restrictions for hotels or hotels under construction. If so, for how many years can we carry forward the ST input credit.
Input credit on service tax for hotels under construction
03 Feb 2015 
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Input service tax credit restricted: credits for construction 'setting up' disallowed after amendment under service tax law.
Input service credit may be used against service tax or excise and must be availed within six months of the bill. The definition of input service includes many services used to provide output services but expressly excludes services in execution of works contracts and construction of buildings or civil structures; services constituting setting up were removed from the definition by a subsequent amendment, rendering construction-related credits ineligible thereafter. (AI Summary)
Input service credit may be used against service tax or excise and must be availed within six months of the bill. The definition of input service includes many services used to provide output services but expressly excludes services in execution of works contracts and construction of buildings or civil structures; services constituting setting up were removed from the definition by a subsequent amendment, rendering construction-related credits ineligible thereafter. (AI Summary)