Cenvat credit of Service Tax, Service Tax

[Aitha RajyaLakshmi]

Whether Cenvat credit can be claimed on Service Tax paid on rent towards Guest House maintained by the Company in different Cities?

Posts / Replies

[Ramaswamy S]

Credit of service tax paid on rent of guest houses not eligible as it is neither used in or in relation to manufacture of excisable goods or provision of output services.

[Ganeshan Kalyani]

The nexus of input credit with the output tax is absent and hence credit is not eligible. Thanks.

[YAGAY AND SUN]

Earlier it was available. However, w.e.f. 01-04-2011 it is doubtful and such availment is prone to litigation. Nexus must be established as mentioned above.

[Himansu Sha]

Moreover when the word 'business' was removed from the ambit of rule 2(l) of CCR 2004

[YAGAY AND SUN]

If high stakes are involved then there is no harm to seek an Advance Ruling or a representation may be submitted to CBEC and TRU.