Can individual take input credit of service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2014 An individual have constructed a commercial complex through contractor. The contractor have charges service tax in his invoice. Can the individual take service tax input credit and later adjust with the service tax payable on rental income from commercial complex

CA Robin Betala

CA Robin Betala (Expert)
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19 December 2014 Home solution Retail Ltd v. Union of India (2009) 14 STR 433 (Delhi) – Input credit of service tax can be taken only if the output is a ‘service’ liable to service tax or a ‘good’ liable to excise duty. since immovable property is neither ‘service’ or ‘goods’, input credit on like industrial or commercial construction service or works contract service which are input service for the output namely immovable property, cannot be taken.