Dear Sir,
We are constructing one building in our factory.
The Builder has submitted a bill for drawing plan towards construction of building by charging service tax in his bill.
Our question is whether we can take service tax credit for this .
Could experts please clarify as the credit value is more whether we can take credit or not.
Matter urgent.
Thanks & Regards,
S.Ramakrishnan
No Service Tax Credit on Factory Construction Drawing Plan Bill Per Rule 2(l) Cenvat Credit Rules, 2004 A party inquired about the eligibility to claim service tax credit on a drawing plan bill for constructing a factory building, which included service tax charges. An expert responded, explaining that under Rule 2(l) of the Cenvat Credit Rules, 2004, 'input services' exclude the service portion in the execution of a works contract and construction services. Additionally, since the term 'setting up' of a factory has been removed from the definition of input services, no service tax credit is available for such services. (AI Summary)
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