service tax on residential colony with the factory premises
Baldev Dewan
(Querist) 10 July 2008
This query is : Resolved
We are manufacturer of engg. products andregistered under Central Excise and as well as service tax. We have given a contract for construction of residential colony for workers and staff within the factory premises. The contractor has raised a bill and charged service tax. we have made the payment of the bill raised by the contractor. Can we take the Cenvat credit of service tax paid to the contractor on the construction of residential colony. Does it fall under the service of construction of residential complex?
Guest
(Expert) 11 July 2008
Yes it falls and you can take the credit under the Cenvat Creidt Rules 2004. Hope you are not under Composition Scheme.
