Input credit

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 I am dealing in e-commerce business. I have paid service tax on rent for my office premise. Can this be considered as Input Service for providing my output services and can utilize the same against payment of tax on my output services ?

RENGARAJ R.K

RENGARAJ R.K (Expert)
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21 July 2012 Definitely,the rent you pay is for establishment purpose and without a premise you cannot do e-commerce business. So, in my opinion, it will fall under eligible input services.

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2012 Thank you sir.

However as per the new definition of Input service, it includes "service used in relation to (setting up - as omitted after 01-04-2011) modernization, renovation, or repairs of a factory, premises of provider of output service........".

Will this make any impact on eligibility of payment of service tax on rent as cenvat credit?

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