TaxTMI 
TaxTMI 
Input service credit - FOR BUILDERS
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....nput service credit - FOR BUILDERS<br> Query (Issue) Started By: - hubert fernandes Dated:- 9-6-2015 Last Reply Date:- 18-6-2015 Service Tax<br>Got 3 Replies<br>Service Tax<br>We are Builders / developers and provide service under declared service ie complex construction. we avail input service credit on service tax paid on input services.At the end of a particular project and after obtaining comp....
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....letion certificate there are some flats unsold which when sold will not attract service tax .whether the credit availed earlier on input services needs to be reversed for such unsold flats and if so under which rule or provisions OR we can fully avail such credit and utilise it for other real estate projects Reply By Mehul Pandya: The Reply: Though, Service tax will not be payable on unsold flat....
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....s, Rule 6 of cenvat credit Rules will surely apply. Proportionate reversal of Cenvat Credit relating to unsold flats will be required. In my view, if such reversal is made immediately after obtaining completion certificate, otherwise interest will apply. Reply By hubert fernandes: The Reply: But Rule 6 is a machinery provision and invoked only when you are providing taxable as well as exempted s....
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....ervice. whether selling of inventory flats amounts to exempted service? Reply By Mehul Pandya: The Reply: Payment of amount or proportionate reversal of Cenvat Credit would be required if assessee avails cenvat credit of some common input or input services<br> Discussion Forum - Knowledge Sharing ....