Input credit on civil construction

[Guest]

We are Business Auxiliary Service Provider, we have received bill for civil contruction (for building and raiwlay siding). service tax is charged on the above bill. is it possible to claim input credit for the same.

[Surender Gupta]

You have to satisfy the conditions specified in the definition of inputs, capital goods and input services in the Cenvat Credit Rules, 2004. If the bill for civil construction is for use in the taxable output services, you can avail the credit indeed.

AI Summary

Input credit eligibility: civil construction costs qualify for credit when used in providing taxable output services. Input credit on civil construction is permissible if the expenditure meets the definitions of inputs, capital goods or input services under the Cenvat Credit Rules, 2004, and the construction works are used in providing taxable output services; in such cases attributable Cenvat credit may be availed subject to the Rules' conditions and documentation.