08 January 2014
We are in printing business and have our own premises for manufacturing. Apart from printing business in the premises we have given some area of the same premises on rent to an fmcg company and collect service tax from them.
We also give service tax on repair & maintenance of machineries, phone bills, freight inward , freight outward, labor charges etc.
My question is that whether we can take the credit of our business stax to write off the stax of rent of the same premises.
If not, then can we go on taking the credit of the service tax paid on business activities and whether it will go on adding or can we apply for refund anytime.
08 January 2014
As per CENVAT credit rules, input credit is eligible only when service is in relation to output service. Then telephone bill etc. paid for manufacturing activity can not be eligible for Service collected on renting of immovable property as per Finance Act, 1994 read with CENVAT Credit rules.
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