Hi friends. Please tell me whether Service Tax credit can be availed for service tax on rent paid on building? Please refer to relevent section, notification, etc. Thank you in advance.
Vishal Jadhav (CA Final Student) (38 Points)
01 July 2008Hi friends. Please tell me whether Service Tax credit can be availed for service tax on rent paid on building? Please refer to relevent section, notification, etc. Thank you in advance.
Sanjeev Kumar
(Private)
(895 Points)
Replied 01 July 2008
there is no bar to get the credit for service tax paid on rent for a commercial building under Cenvat credit rules, hence a taxable service provider seems to be entitled to get cenvat credit.
Vishal Jadhav
(CA Final Student)
(38 Points)
Replied 01 July 2008
Can u refer it to any provision in cenvat credit rule?
S.P.Mahanta
(Internal Auditor)
(647 Points)
Replied 01 July 2008
Input credit on Service tax on Rent shall qualify for Cenvat Credit if the building is used for rendering output service in case of taxable service provider.
CA PRAMOD SARAOGI
(Chartered Accountant)
(1113 Points)
Replied 10 July 2008
you can utilise the Service tax paid on the Input services for payment of ouput services. Thus if the Building is used for the purpose of your business you can definately take the credit againt payment of Duties.
S.P.Mahanta
(Internal Auditor)
(647 Points)
Replied 04 August 2008
Service tax on Rent paid is available as cenvat credit if such rent is paid for rendering the output service. Similarly, rent paid on factory bldg: is available as cenvat credit to a Manufacturer if such is used for storing raw materials/ or manufacturing.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
