Availment of Service tax credit

[SANDESH SHINDE]

Dear Sir,

We are a mfg co and we as a Head office are registered under Service tax as a ISd Please explain whether we can avail Service tax credit on Painting and repairing of walls service under works contract service and furhter of Carpentary Service as a input service.

AI Summary

Service Tax Credit Available for Repairs, Not New Constructions, Under Rule 2(l) of CENVAT Credit Rules, 2004. A manufacturing company, registered under Service tax as an Input Service Distributor (ISD), inquired about availing Service tax credit for painting, repairing walls, and carpentry services under works contract service. The response clarified that under Rule 2(l) of the CENVAT Credit Rules, 2004, service tax credit is available for services related to modernization, renovation, or repairs of a factory or office. However, the credit is not available for services used in constructing new assets. Repair services for existing structures are eligible for credit, while services creating new assets are not.