Dear Sir,
We are a automobile manufacturing company & in this year we have installed new air conditioner in our shop floor for workers & also work related to sealing and partation in shop floor.
Now our supplier raised invoice & charges service tax on 50% of invoice value.
Sir, can we avail service tax cenvat on this service.
Automobile Manufacturer Queries CENVAT Credit Eligibility for Service Tax on Air Conditioner Installation; Clarification Needed on Invoice Breakdown An automobile manufacturing company inquired about availing CENVAT credit on service tax charged for air conditioner installation on their shop floor. The supplier charged service tax on 50% of the invoice, raising questions. Replies indicated that CENVAT credit is eligible, but clarification on the invoice breakdown was needed. It was explained that service tax applies to the service portion of a works contract, and credit is available if the company qualifies as a manufacturer. A reply acknowledged an error in the explanation provided by a trainee, emphasizing learning from the mistake. The discussion highlighted the complexity of service tax on works contracts. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
