cenvat credit, Service Tax

[S.C. WADHWA]

Dear experts,

we have been paying service tax on rental income being service provider.  We have invested some money through Port folio management services.  We are getting income in shape of dividend, interest, LTCG AND STCG.  Port folio management have been charging service tax on management fee.  Now our query is as under:-

 

Whether we are elligibal to get input tax credit of service tax paid on management fee and reduced our liability by adjusting the input credit.

 

S.C.WADHWA

 

Posts / Replies

[Pradeep Khatri]

Though there is no nexus in Input Services and Output services in your case, even then, you may avail the CENVAT credit since there is no one to one correlation required for availing the CENVAT credit in the case of Service Provider.

[raj kumar shukla]

once cenvat credit has been availed properly ,it can be used gaainst payment of service tax on ANY output service.

[CA Seetharaman K C]

As per Rule 2(l) of Cenvat Credit Rules ,2004“input service” means any service, -

            (i) used by a provider of ²⁶[output service] for providing an output service; or

           From the above it seems that a nexus needs to be drawn between the input service and the output service for availment of CENVAT. The question is whether the items listed by you would form inputs.