CBEC clarifies the issue of Cenvat Credit for the purpose of payment of Service on Renting of Immovable Property

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..... CBEC clarifies the issue of Cenvat Credit for the purpose of payment of Service on Renting of Immovable Property - Commentaries / Editorials Dated:- 5-1-2008 - News - CBEC has issued a master circula .....

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..... r no. Circular No. 96/7/2007-ST dated the 23rd August, 2007 to clarify various issues. Now this circular has been amended vide Circular No. 98/1/2008-ST dated 4/1/2008 to clarify more issues. .....

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..... On of such issue was as under: Whether cenvat credit of commercial or industrial construction service or works contract service used for construction of an immovable property, could be treated as .....

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..... input service for the output service namely renting of immovable property service under the CENVAT Credit Rules, 2004 . Now the CBEC clarified the issue as under: Right to use immovable propert .....

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..... y is leviable to service tax under renting of immovable property service. Commercial or industrial construction service or works contract service is an input service for the output namely immovable .....

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..... property. Immovable property is neither subjected to central excise duty nor to service tax. Input credit of service tax can be taken only if the output is a 'service' liable to service tax or a 'go .....

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..... ods' liable to excise duty. Since immovable property is neither 'service' or 'goods' as referred to above, input credit cannot be taken. - News - Press release - PIB Tax Management India - taxmanage .....

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..... mentindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

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