Input service credit

[Swapneswar muduli]

Dear Sir,

If we avail a work contract service for installation of machine and we paid service tax is it eligible for cenvat credit under input service ?

AI Summary

Debate on CENVAT Credit Eligibility for Service Tax on Work Contract for Machinery Installation Amid Rule Exclusions A query was raised about the eligibility of CENVAT credit for service tax paid on a work contract service used for installing machinery. An initial response affirmed the eligibility of such credit. However, a follow-up question highlighted an exclusion in the CENVAT rules regarding services for constructing structures supporting capital goods. Various contributors discussed the interpretation of these rules, referencing case law and emphasizing the importance of justifying the credit claim before authorities. Opinions varied, with some supporting the eligibility based on case precedents, while others pointed out the explicit exclusions in the rules.