Compnay X has rented a property to Company A. (X charges monthly rent to A and also charges Service Tax on the rent.) Say monthly rent is 100,000 + ST 12000.
Company A has given the entire property to Company B on rent (sub lease) and charges rent from Comapny B. Say Rent is 110,000 + ST 13200.
Q1) Can compnay A claim CENVAT of rent that it has paid to X. (thus only pay 1200 to govt fom the 13200 ST received from B as it has already paid 12000 to X)
Q2) What happens when the rent paid to X and rent reveived from B are the same. (can A take CENVAT of entire ST paid to X and thus not have to pay the ST collected from B)
Q3) Would the answer change if only party of the property is rented to B ?
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