CENVAT credit on service tax

POSTED BY K.K.Gupta ON January 17, 2013 3:24 pm ONE COMMENT

Sir,

As per clouse  no 12 of table in Notification no 26/2012-Srivice Tax dt 20th June 2012 ,Builder can avail CENVAT credit on input used for contruction of building.At present this is direct benifit to the builder.My question is-  this benifit should be passon to buyer by builder ? Is there is any provision in service tax rules that can complel the the builder to do so.

This will benificial to lakhs of buyers who use hard earn money to purchase the home. 

One reply on this article “CENVAT credit on service tax”

  1. Dear K K Gupta, the issue raised by you is a valid one but as per the current situation of real estate market, who ‘ll bell the cat is a million dolor question. What you are telling in the form of Govt. notification is a valid relief for builder & in a sense, it should be passed on to the buyers of the property but what ‘ll you do or one should do if builder refuses to pass on this benefit to the buyer? “lll you fight it out in the court for your own benefit or ‘ll meekly surrender to the builder to get the keys of your dream home?

    Thanks

    Ashal

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