Dear All,
One of my client is hotel, providing mandap keeper, accomodation, renting (as some portion rent out to bank) service.
He engaged works contractor for construction of some portion of building (with material). Contractor charging Service Tax. Can my client claim CENVAT credit. Position after 01/04/2011 to 30/06/2012 and position after 01/07/2012.
For some portion, he purchased steel, cement etc. and paid excise duty on that and constructing building. Can he claim excise duty as CENVAT credit. If yes 50% or 100% in Ist year.
Pl. reply.
Thanks.
CA Sumeet Tholle
Can Hotels Claim Full CENVAT Credit on Materials After 2011 Definition Change in 'Input' for Works Contracts? A client operating a hotel that provides various services, including accommodations and renting spaces, engaged a contractor for building construction. The contractor charged service tax, and the client inquired about claiming CENVAT credit for the service tax and excise duty paid on materials like steel and cement. One response suggested that if the full service tax rate is paid on the works contract, 100% credit on materials can be availed in the first year. However, the client expressed concerns about changes in the definition of 'input' effective from April 1, 2011, which might exclude such credits. (AI Summary)
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