TaxTMI 
TaxTMI 
Sir
Can we avail Cenvat Credit on Service Tax as a recipient paid for service portion in the execution of a Works Contract? Please advise me at earliest.
With thanks & regards
Samik Chaudhuri.
Cenvat credit on Service Tax
28 Dec 2016 
4 Replies 
1098 Views Asked by
Cenvat credit on service tax: availability depends on works-contract service classification and proper reverse-charge documentation.
Cenvat credit on the service portion of a works contract depends on service classification: civil construction and structural support for capital goods are excluded from input services and not creditable under reverse charge; modernization or improvement of a factory is treated as creditable; repair, maintenance or renovation of factory premises may be credited if service tax paid under reverse charge is evidenced by the GAR-7 challan. (AI Summary)
Cenvat credit on the service portion of a works contract depends on service classification: civil construction and structural support for capital goods are excluded from input services and not creditable under reverse charge; modernization or improvement of a factory is treated as creditable; repair, maintenance or renovation of factory premises may be credited if service tax paid under reverse charge is evidenced by the GAR-7 challan. (AI Summary)