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Cenvat credit on brokerage

amiya ( ) (114 Points)

26 November 2011

Dear all

We are receiving brokerage against ARN after deducting of service tax. We are also in renting of immovable property. Can we take cenvat credit from brokerage.

What i think the both are different service so we can not take is it ?

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4 Replies

DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 26 November 2011

Eligiblity to take credit on INPUT and INPUT SERVICE depends on whether you have used same for providing output service or manufacturing and not on the basis as told by you.

Regards

Dayananda

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 26 November 2011

If you are receiving brockerage, that means you are providing some brocking service. Cenavtcredit can be taken from a service received by you.

amiya ( ) (114 Points)
Replied 26 November 2011

Originally posted by : CA Unnikrishnan Nair N
	If you are receiving brockerage, that means you are providing some brocking service. Cenavtcredit can be taken from a service received by you.

Dear sir

yes we are providing brocking service. But we are receiving rent from immovable property and premises are different. In this case..

CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 26 November 2011

Brocking and renting of property are services provided by you . You are liable to pay tax on both the services. Cenvat credit can be taken only from services received by you.