OVat & Service Tax on Civil Work (Foundation for machines)

[Bhalchandra Ramdasi]

Respected Sir,

 

We have to do Civil work i.e. foundation for machines for our customer in Orisa. We would like to know :

Whether can we or our customer avail Credit of Input services, input material and Vat Set off ?

Thanks,

AI Summary

CENVAT credit on foundations for capital goods denied; VAT set-off unavailable, civil work must be capitalised and depreciated.
CENVAT credit on laying foundations for capital goods is not allowable and VAT set-off under the OVAT Act is not available for such civil work; input services and input material credits are thus unavailable and the expenditure must be capitalised and recovered through depreciation under the Income Tax rules.