CENVAT CREDIT ON REPAIRS TO OFFICIAL BUILDINGS

[hardik thacker]

CENVAT CREDIT ON REPAIRS TO FACTORY BUILDINGS

As per the definition of Input Service ( Rule 2(l) ), Input Service includes 'services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises'

and excludes 'service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for - (a) construction or execution of works contract of a building or a civil structure or a part  thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services;'

from the above, 1. Can we avail the CENVAT credit on repairs to factory buildings which may comes under the category of works contract service.

AI Summary

Debate on CENVAT Credit Eligibility for Factory Building Repairs under CENVAT Credit Rules, 2004: Modernization vs. Construction The discussion revolves around the eligibility of availing CENVAT credit for repairs to factory buildings under the CENVAT Credit Rules, 2004. Participants debated whether such repairs, categorized as works contract services, qualify for input service credit. Some experts, like Rajagopalan Ranganathan and Kasturi Sethi, argue that repairs are eligible for credit as they fall under modernization and renovation. Others, including Ganeshan Kalyani and Mahir S, contend that works contract services are excluded from credit eligibility unless they are not related to building construction. The conversation highlights differing interpretations of the rules and the distinction between factory and building.