Question ID : 16527

cenvat credit on land lease

A new company has taken a vacant land on lease to build a factory. Whether input credit of service tax on land rent be taken a) during setup of factory and b) after start of commercial production

Answer ID : 44868

Yes, In case of Factory, Service Tax on Rent paid is eligible for cenvat credit. for both the stage a) during setup of factory and b) after start of commercial production

Answer ID : 44873

In the 3 segments of the definition of Input services it appears that land rental services used at the time of putting up a factory would be eligible as it is not specifically excluded. Post commercial production also it would be available provided that the product proposed to be manufactured is excisable goods liable to duty.

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