26 March 2009
Can service tax credit be taken on rent paid to airport authority for hanger space hired by the company? The subsidiary company is created by the company for purchase of aeroplane. The aeroplane is used by the directors of company for their personal use.
28 March 2009
Credit is available. Aeroplane must be used by the Directors for official purposes, otherwise why the company will pay the service charges. Explain the transaction- company---subsidiary company---- renting space, then only the query can be properly answered.
CAclubindia
