Renting of Immoveable Property, Service Tax

[Mangesh Lokre]

Suppose, a person who has multiple Properties which he is providing to other person for commercial purpose. Since the scope of business is huge, he had a Office where all the acccounting of all these rentings are taken care. To run this office, he had taken various equipment ( Capital Goods ) including telephone, internet,computers, softwares, ACs etc. My question is whether the cenvat credit taken ( CVD,SAD etc ) on office equipment can be utilised for payment of Service Tax on the Output service ( renting of immoveable property ) ? Please guide with relevant case law/circular

Posts / Replies

[rishi mohan]

Definitely sir if the input services are wholly used for the business purpose then the credit for the same shall be taken. A relation should take place while availment of cenvat credit.

In the above case, cenvat credit of  input services on telephone, internet, computers, softwares, ACs shall be taken and same shall be utilised while making a payment of Service Tax on the output service.