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Service tax credit

Vineeth PN (Account Assistant) (687 Points)

12 September 2015

X is Individual Service Provider. He also Service Receiver.Can he utilise service tax.Both Service is renting of Immovable Property.

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5 Replies

aman gupta (article) (48 Points)
Replied 12 September 2015

Yes if he is receiving the service of rentingas well providing the same service then he can utilize the service tax credit paid.

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Aditya RVS (Practice) (221 Points)
Replied 13 September 2015

Is the same property taken on rent and further sub-let?

Please note that Sevice Tax paid on one property cannot be considered as Input service in relation to Service Tax payable on letting out another property, since there is no direct nexus betwen the two.

Ashok J (CA Final) (880 Points)
Replied 13 September 2015

How can the lessee sub let wen he is not owner

Aditya RVS (Practice) (221 Points)
Replied 13 September 2015

Please refer as below. Subletting is a mode where the tenant lets out the rented property to another.

Vikas (CA) (1135 Points)
Replied 14 September 2015

Dear Aditya,

There is no need to have a direct nexus with the output Service tax liability. Thus, the Cenvat credit on the services received in the form of renting of immovable property should be available, provided such premises are being used to provide a taxable output service.