We are engaged in construction of a mall. Some finished area has been let out. The query is as under :-
1. Can the Service Tax paid to the contractors for HVAC, Fire Fighting, Electricity, Glass and panel front façade of a civil structure be claimed as credit for payment of service tax on output services like Rent, HVAC and Common Area Maintenance (CAM).
2. Can the excise/custom duty paid on the equipments like escalator, chiller and lift be claimed as credit for payment of service tax on output services in which these equipments like HVAC and CAM are used.
Please provide an opinion.
Construction Firm Queries Service Tax Credits on Subcontractor Services; CENVAT Credit Possible Under Specific Conditions A construction company involved in building a mall seeks advice on claiming service tax credits. They ask if service tax paid to contractors for HVAC, fire fighting, electricity, and facade work can be credited against service tax on output services like rent and common area maintenance. Additionally, they inquire about claiming excise/custom duty on equipment like escalators and chillers as credit. One response references a circular disallowing such credits, while another states that service tax paid to subcontractors for finishing services can be claimed as CENVAT credit, provided subcontractors do not claim CENVAT credit on inputs. (AI Summary)
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