Cenvat credit of service tax paid on rent of premises, Service Tax

[A.R.S.KRISHNA RAO]

Whether servie tax paid on rent of premises can be claimed as input service credit under the CENVAT Rules by the provider of a taxable service

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[V Ramanujam]

Rent of premises can very well be claimed as input tax credit provided such premises is utilised in providing a taxable output service. Further, as per Rule 6 of CENVAT Credit Rules, a service provider can utilise 100% credit or 20% of output liability as the case may be, depending upon its maintenance of separate records showing utilisation of input services towards taxable/non-taxable output services.