TaxTMI 
TaxTMI 
Sir
If our Factory Building is constructed by us then we are liable to pay Service Tax or not.
Please inform me at earliest.
With thanks and regards
Samik Chaudhuri.
Service Tax on Civil Construction
Samik Chaudhuri
Service Tax Applies on Factory Construction by Providers; No Input Credit Due to Cenvat Credit Rules, 2004 Exclusions. A participant inquired about the obligation to pay service tax on constructing a factory building. One respondent clarified that if a service provider constructs the building, service tax applies, but the tax paid cannot be claimed as input service credit due to exclusions in the Cenvat Credit Rules, 2004. Another confirmed the inadmissibility of such credit. A third respondent noted that if the construction was done independently without a contractor, no service tax is due, as self-service is not taxable. (AI Summary)