Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2012 Weather service tax credit is available for service tax paid Rent building, etc. by a company X where only trading activity is done , but the company is supplying manpower to another’s company Y showroom by charging service tax where service activity is done and the company X is supplying goods to the company Y Showroom by charging VAT.
OANLY trading activity is done by X at rented place.Service activity is done at Y Place only.

Lovnish Gupta

Lovnish Gupta (Expert)
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27 July 2012 Hi,

Service Tax credit is available on inputs and input services used for providing output service. In the given query Co. is doing trading business means doesn't providing any output service or manufacturing. Hence service tax credit will not be available.