Cenvat credit by a manufacturer of exciseable goods on intermediate services for construction of Building or civil structure after 01.07.2012

[Harishanker Patel]

as per rule 2(l)(A) of  CCR, 2004 service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the  Finance Act, (hereinafter referred as specified services) in so far as they are used for -

(a) Construction or execution of works contract of a building or a civil structure or a part thereof; or
(b) Laying of foundation or making of structures for support of capital goods,Except for the provision of one or more of the specified services are excluded in the defination.
So whether credit on other services eg manpower supply,hiring of JCB,Site preparation etc,used for Construction or execution of works contract of a building or a civil structure or a part thereof & Laying of foundation or making of structures for support of capital goods is available or not.

[YAGAY and SUN]

No CENVAT credit on Construction Service will be available to Manufacturer of Finished Goods.  The definition of goods has been amended since 01-04-2011 and the Cenvat Credit Rule, have been drastically amended in this regard.

You may avail the depreciation as allowed under the provisions (Section 32) of Income Tax Act, 1961

AI Summary

Cenvat credit on construction-related services denied to manufacturers; claim depreciation under income tax as an alternative.
CENVAT credit on intermediate construction-related services used for construction of a building or civil structure, including laying foundations or supports for capital goods, is treated as "specified services" under rule 2(l)(A) of the Cenvat Credit Rules and is not available to a manufacturer of finished goods following amendments to the definition of goods and the Rules; depreciation under the Income Tax Act, 1961 is suggested as an alternative tax relief.