service tax credit eligible on construction drawings-reg

[Ramakrishnan Seshadri]

Dear Sir,

We are constructing one new paintshop for our company. For this we have received invoice towards drawings for construction of this paintshop. They have charged service tax on their invoice. Our question is whether the service tax paid on this invoice is eligible for service tax credit.

Please clarify.

Thanks

S.Ramakrishnan

AI Summary

Service Tax Credit Eligibility for Construction Drawings Under CENVAT Credit Rules, 2004: Modernization and Renovation Apply A company is constructing a new paint shop and received an invoice for construction drawings that includes service tax. They inquired if the service tax is eligible for credit. One respondent confirmed eligibility, while another referenced CENVAT Credit Rules, 2004, explaining that services related to modernization, renovation, or repairs qualify for credit. Prior to April 1, 2011, credit was allowed for setting up factories, but post this date, only modernization and related activities qualify. Another respondent suggested that since the construction is a modernization effort, the service tax credit is indeed eligible.