service tax input credit on construction on Rain Water Harvesting System

[RAM SHARMA]

Dear Experts,

Whether we can take service tax credit of construction Rain water harvesting System ? We have book this expenses in our accounts Building Under Construction head. Please advice.

Thanks & Regards

AI Summary

Service Tax Credit Eligible for Rainwater Harvesting System Construction if Legally Mandated Under Cenvat Credit Rules, 2004. A user inquired about the eligibility of claiming service tax credit for constructing a rainwater harvesting system, booked under 'Building Under Construction' expenses. Experts clarified that under Cenvat Credit Rules, 2004, input services used for construction are generally excluded unless they fulfill statutory obligations. If the construction is a legal requirement, such as for obtaining a factory license, the CENVAT credit can be availed. Several experts agreed that if the rainwater harvesting system is mandated by law, the service tax credit is applicable. The discussion concluded with consensus on the eligibility based on legal requirements.