credit of service tax paid on construction

[kamal chordia]

Please clearify that can we take cenvat credit on service tax paid on construction servicex.

Related service tax notification etc.

 

 

[YAGAY and SUN]

Working effective from 01-04-2011, you can't avail the CENVAT credit on service tax paid on construction services.  This aspect has been clarified in the CENVAT  credit Rules, 2004.

As per Notification No. 24/2012 , w.e.f 01/07/2012,  the cenvat credit can be availed on input services & capital goods but can't be availed on inputs

AI Summary

CENVAT credit on construction services: initially disallowed, later confined to input services and capital goods, excluding inputs.
From 01-04-2011, CENVAT credit is not available on service tax paid on construction services under the CENVAT Credit Rules. Notification No. 24/2012 later permitted CENVAT credit on input services and capital goods while maintaining the disallowance of credit on inputs.