CENVAT Credit Availability

[felix ka]

Hai experts,

what is your view on the cenvat credit availability of S T paid to 'construction services' received when a new plant was installed as a part of the renovation project of an existing factory? project commenced in 2009, payment to the construction contractor is pending. 

[BHARAT PUROHIT]

D/ SIRS

W.E.F 01/04/2011, SERVICE TAX  ONLY ON MAINTAINENCE / MODIFICATION OF  EXISTING CONSTRUCTION  IS ALLOWED.NEW CONTRUCTION IS DISALLOWED.

IF ANY CONSTRUCTION SERVICE WAS RENDERED PRIOR TO THIS DATE, CREDIT IS ALLOWED IRRESPECTIVE OF PAYMENT PENDING.

THNX/ B.B.PUROHIT

[felix ka]

thanks Mr. B Purohit.

all others agree?

AI Summary

CENVAT Credit Not Available for New Construction Services Post-April 1, 2011; Allowed for Pre-2011 Services Pending Payment. A query was raised regarding the availability of CENVAT credit for service tax paid on construction services used during the installation of a new plant as part of a factory renovation project that began in 2009. A respondent clarified that as of April 1, 2011, CENVAT credit is only allowed for service tax on maintenance or modification of existing constructions, not new constructions. However, if construction services were provided before this date, credit is allowed even if the payment is pending. The original poster thanked the respondent and sought confirmation from others.