Service Tax on Renting of Immovable Property, Service Tax

[Kapil Dixit]

We are engaged in construction of a mall. Some finished area has been let out. The query is as under :-

1.  Can the Service Tax paid to the contractors for HVAC, Fire Fighting, Electricity, Glass and panel front façade of a civil structure be claimed as credit for payment of service tax on output services like Rent, HVAC and Common Area Maintenance (CAM).

 2. Can the excise/custom duty paid on the equipments like escalator, chiller and lift be claimed as credit for payment of service tax on output services in which these equipments like HVAC and CAM are used.

Please provide an opinion.

Posts / Replies

[NEERAJ KUMAR, RANCHI]

As per circular no. 98/2008 -ST this is not permitted, you can refer the same for more clarity, hope answered the query. 

[Hari Venkataramana]

For Q1 since the service is covered under Commercial or Industrial Construction Service or Works Contract Service the sub contractor engaged for finishing services for HVAC, Fire fighting Glass and Panel front facade of a civil Structure which are in the form of finishing services are liable to service tax under the same category in pursuance of latest clarification by Board consequent to Jaya Prakash Industries case.  The service tax paid to these sub contractors can be availed as CENVAT Credit being an input services so long as the sub contractors doesnot avail CENVAT credit on Inputs.