cenvat credit of service tax

 One of our clients is paying lease rentals on a restaurant taken on lease by him. he has to pay service tax @ 12.36 % on it. please suggest some mode by which he can take the credit of the service tax paid on lease rentals. He pays VAT on the goods purchased by him but it is not allowed to set off the VAT against the service tax liability. So please suggest some means by which the service tax liability can be reduced to minimum. The lease rentals are being paid for the complete set up which includes crockery, furniture and other things.

 

Replies (5)

Service tax can be set off against service tax and excise. Service tax cannot be adjusted against VAT as VAT is a state tax and Excise is Central Tax. 

Hello Sir,

Can you explain me the procedure for claiming input credit of service tax against excise duty paid, can additional customs duty paid be availed for input credit of service tax. ?

Hi Mukesh

 

Service tax credit can be set off against service tax payable not with any other tax liability.

 

Mr. Jyoti,

I am afraid but you are totally wrong. Input Service credit is a part of cenvat Credit & it can be utilised for the payment of Both Output Service Tax as well as for Excise Duty Liabilty as told by Mr. Swaminathan.

For further clarification,please  refer Rule3(4) read with Rule3(1) of Cenvat Credit Rules,2004

 

Mr. Mukesh,

I am not so clear with your query. If your Client is paying Lease Rent, in such scenario, it is the liability of Lessor to pay Service Tax.or Is it your Client having some other Service Tax liability? Please clarify

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
ARTICLESHIP 10 July 2026
Article Assistant

N S Gokhale & Co

Thane

CA Inter

View Details
Company
Featured 18 July 2026
CA Articleship

apricus india

Mumbai

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
31 July 2026
Senior Accountant - Bunia, Democratic Republic of Congo

AD GLOBAL LTD

Mumbai

B.Com

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Follow