Input Service credit - Reg

[vinay wakde]

Our company had purchased  land for expansion of existing plant. The land is part of factory premises. The service providers had provided various services i.e.  Cleaning, Excavation, leveling, filling to develop the land for  new project. The Professional & liaisoning services are also received.

Kindly guide us whether we are eligible to take Input service credit against the Bills received by us for said activities/ services?

Regards,

VINAY

 

AI Summary

Input service credit restricted by scope and requires timely payment or face reversal with interest and scrutiny.
CENVAT credit for services used in developing factory premises is available only where services fall within the definition of Input Service (modernization, renovation or repairs), supported by supplier invoices; if credit is availed before paying the supplier, payment must be made within the prescribed period or the credit must be reversed with interest, and the deletion of "setting up" from the input service definition limits credit for initial establishment activities and may attract departmental scrutiny.