Input service tax on renting of immovable property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 February 2014 Sir,

One Company has taken one premises on rent in Jaipur and it is paying service tax on rent there, another side it has let out one premises in Delhi and charging service tax thereon.

Can this company take input of Service tax paid by it in Jaipur against service tax payable against premises situated in Delhi??

Thanks in anticipation.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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10 February 2014 Input can be claimed on the basis of service obtained for the business.
In your case When you are paying Rent in Jaipur for running business and ST paid on that rent can be taken as input against output service from Jaipur rented property

Not eligible to adjust with ST received from Delhi

Note: if your company is running a business of hiring and letting the immovable property then the answer changes i.e you ca claim