Chetan (Study) (106 Points)
19 April 2013Dear All,
I am Having a Property Which I Have Given on Rent and on which I am Collecting Service tax as well and Paying to Government.
Recently I Have Started to Construct Building. Service tax is Levied by Respective Service Provider in Respect of Construction of Building.
So I Have to Pay Service tax on all these Bills.
Now My Question is Can I Take Service tax Credit of All these Service tax against the Service tax I am Colecting by Renting out the Property ?
Please Help
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 19 April 2013
No, Chetan. You cannot utilise your cenvat credit of service tax on construction of building paid to providers against output liability of service tax collected from tenants as the input service is not used to provide taxable output services.
Thanks,
CAclubindia
