Service Tax Hotel

[Guest]

Dear Sir,

We are setting up a hotel/club for that we have constred a building and purchased huge plant/AC/Chiller etc. We will open this in October and will charge Service Tax and VAT as well. My query is that service tax amount which we r paying for Bulding/PM/interior is claimable as CENAVT against our future outgo of Service TAx.

Excise Duty paid on Machiery/freez/AC are claimable agaist furture Serice tax payment?

Advertisment and sales promotion charges paid before opening the Hotel ... ST paid on the same will claimable?

[Mahir S]

Sir,

No you cannot avail the Service tax credit on Building/PM/Interior/Advertisement and sales promotion charged before opening the hotel, as the word "Setting Up" of Factory Premises has been removed from the definition of Input Services.

Further, on civil structure no CENVAT is allowed.

[Keshav Murthy]

your are not eligible to claim cenvat credit of construction but your eligible to claim the Cenvat credit on Palnt/chiller which is used for storing the eatable products used in providing service.

[Manoj Agarwal]

Dear Sir,

Subject to certain conditions, in most of the case, cenvat credit is available to be adjusted against output service tax.

Regards,

Manoj Agarwal,

Service Tax Consultant,

+91-9937041788

AI Summary

Cenvat credit eligibility: construction and pre-opening promotional service tax not claimable; plant used in service may qualify. Cenvat credit cannot be availed for building construction, civil structures, interiors, or pre opening advertising because 'setting up' was removed from Input Services and civil works are excluded; credit may be available for plant and machinery used in providing the taxable service, and any admissible credit can be adjusted against output service tax subject to statutory conditions.