Cenvat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2012 WE ARE RUNNING A CAFE AND RESTAURANT AT SEVERAL OUTLETS. WE ARE PAYING SERVICE TAX ON RENT (CHARGED BY OWNER) OF OUTLETS. WE ALSO PROVIDE OUTDOOR CATERING SERVICES. ON 50% OF AMT WE CHARGE SERVICE TAX. CAN WE CLAIM CENVAT CREDIT ON RENT AG THIS COLLECTION?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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17 April 2012 No, you are not allowed to take cenvat credit.
Even if you are liable for ST on 100% value, cenvat credit of ST paid on rent is not allowed.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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17 April 2012 Dear Author,

The percentage on which service tax is to be charged, changed from 50% to 60% but the effective date is yet to be notified.

No cenvat credit is allowed in your case.

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