Cenvat credit

This query is : Resolved

CA Sudha S Keswani (Querist)
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11 January 2013 hi experts,
if we have purchased business premises and paid service tax on same. now if we are giving it on rent then we are liable for service tax on renting of immovable property. in such case can we take cenvat credit of service tax paid on purchase of property for payment of service tax on renting of immovable property

JOYAL GEORGE

JOYAL GEORGE (Expert)
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11 January 2013 In my opinion, you are eligible for cenvat credit. because the Cenvat credit rules doesnot prohibit on taking cenvat credit for service tax paid on purchase of property. I hope service tax is paid for consultation or other services.

CA Sudha S Keswani

CA Sudha S Keswani (Querist)
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12 January 2013 no no. service tax is paid on construction of commercial and residential complex. on 25% of value.

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Kaushik Vinod

Kaushik Vinod (Expert)
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12 January 2013 Dear Sudha,

Rule 2(l) of CCR,2004 excluding part from 01-07-2012 denies the credit of tax paid on construction Services unless you are not providing the same services.
Reference to the Rule is given below:
[(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for—
(a) construction or execution of works contract of a building or a civil structure or a part thereof; or
(b) laying of foundation or making of structures for support of capital goods,
except for the provision of one or more of the specified services; or]

Thanks