Cenvat credit of excise duty and service tax

[pankaj sethi]

we have paid excise duty ,service tax on the capital good ,input purcahsed . we are constructing a commercial complex (mall) , Are we entiteled to avail cenvat credit when ever our s tax liabilty will arise ,i e in future .

[sudhir V S]

Dear Mr. Pankaj Sethi, Under construction there are several options available. option I: 12.36% on full consideration - CENVAT credit on inputs, capital goods, input services admisable. Option II: 12.36% on service portion under 12/2003 - CENVAT credit on inputs and Capital goods admisable. Option III: 12.36% on 33% of the consideration under 1/2006 - NO CENVAT admisable. Option IV: 2.06% under works contract -CENVAT on capital goods & input services admisable. Hence if u chose for option I, the credit of inputs, input services and capital goods are always admisable

[Madhukar N Hiregange]

Sudhirs views are correct. The question maybe asked as to how the cement / steel can be used for provding the rental services. To avoid this possible hurdle, the contractor should charge on the gross amount 12.36% and he would be eligible for the credit as long as he is the consigneee of the goods. Buyer can reamin the mall owner.

AI Summary

Entitlement to CENVAT Credit for Excise Duty and Service Tax on Capital Goods in Commercial Complex Construction Explored A query was raised about the entitlement to avail CENVAT credit on excise duty and service tax paid for capital goods and inputs used in constructing a commercial complex. The first response outlined several options: Option I allows full CENVAT credit on inputs, capital goods, and input services; Option II allows credit on inputs and capital goods; Option III disallows CENVAT credit; and Option IV allows credit on capital goods and input services. The second response concurred with these views and suggested charging 12.36% on the gross amount to ensure eligibility for credit, provided the contractor is the consignee of the goods.