Cenvat credit on service tax on rent
DEEPAK GOYAL (SERVICE) (193 Points)
21 June 2016DEEPAK GOYAL (SERVICE) (193 Points)
21 June 2016
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 21 June 2016
Vishal Goel
(Chartered Accountant)
(1693 Points)
Replied 28 June 2016
If assessee is using the premises for the purpose of office as well manufacture or production of goods, rental charges become an input service for the purpose of manufacture of goods. Therefore, service tax paid on rentals can be availed as Cenvat credit and utilized for payment of on final products so manufactured.
If such service is used for providing Non Taxable service then CCR is allowed.