TaxTMI 
TaxTMI 
In view of changes in cenvat credit rule wef 01.04.2011 please suggest whether cenavt credit on service tax for maintenance,repair,renovation & modification of office buldings & factory shed is available or not when such works are classified under commercial & industrial service by the service provider.
credit on maintencnce of office building
06 Mar 2012 
5 Replies 
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CENVAT credit for building maintenance may depend on whether services are repair or construction and relation to manufacturing.
Availability of CENVAT credit for service tax on maintenance, repair, renovation and modification of office buildings and factory sheds depends on the character of the work and its nexus to manufacturing: repair/maintenance of existing premises may attract credit, whereas erection of a new building is treated as construction. Taxpayers should examine the contract scope and obtain invoices that specify the nature and location of work. (AI Summary)
Availability of CENVAT credit for service tax on maintenance, repair, renovation and modification of office buildings and factory sheds depends on the character of the work and its nexus to manufacturing: repair/maintenance of existing premises may attract credit, whereas erection of a new building is treated as construction. Taxpayers should examine the contract scope and obtain invoices that specify the nature and location of work. (AI Summary)