I am accountant in a private limited company, in financial yr. 07-08 the construction work of the company's building was on progress and during the yr we had paid service tax (Rs.3,34,000/-)on labour charges. In the 08-09 yr. after completing the construction work of the building, we have given the building on rent and we are charging service tax on the rent amt. may i take input credit (3,34,000/-paid in the yr. 07-08) against the service tax on rent,we liable to pay.
24 August 2008
Please refer boards circular 98/1/2008- ST. It restricts taking CENVAT credit under Commercial or Industrial Construction Services and Works Contract Service for construction of property and given on rent.
CAclubindia
