I have a service tax client who has taken a premises on rental basis on 1st April 2014. From 1st April to 21st Sept 2014 work (Furnishing, plumbing etc) on the premise was carried out and no output services were provided for the said period. Can my client claim the cenvat credit on the rent charged by the landlord for the period 1st Apr 2014 to 21st sept 2014 against the service tax liability arising out of the output service provided after 21st Sept 2014.
Note: Prior to April 2014, client was providing output services from some other premise and its turnover has already crossed 10 lacs and it is already registered with the service tax department. However during the said period of Apr 2014 to Sept 2014, it did not provide any output service from the old as well as the new premises
Kindly reply.
CAclubindia
