30 August 2012
Suppose, I have taken a shop on rent from a builder in a commercial centre for which he has raised the bill of lease rent charging service tax. And I'm a chartered accountant firm raising bills to my client charging service tax to them.
Now, my question is whether am I eligible for cenvat credit of service tax charged by the builder to me?
Please provide the answer with supporting of rules and provisions thereon.
31 August 2012
For running any business, where service tax is payable, the cenvat on input of rent, lease rent is eligible including for CA firm. There is no direct rule or provision to quote. The cenvat credit rule says if the services availed are "in relation to" output services then it can be set off. Without office, the output services cannot be done.
31 August 2012
Ok sir, this is what I finally decided on after applying the basic rule of Cenvat Credit. Now, what if I buy the office instead of hiring on rent? In that case, it will be premises that means a capital good right? Cenvat credit on capital goods is also allowed but as per the definition of capital asset it does not include premises then how can we claim cenvat credit in that case?
CAclubindia
