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TMI BlogCBEC clarifies the issue of Cenvat Credit for the purpose of payment of Service on Renting of Immovable PropertyX X X X Extracts X X X X X X X X Extracts X X X X ..... CBEC clarifies the issue of Cenvat Credit for the purpose of payment of Service on Renting of Immovable Property X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. On of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch 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 input serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice 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 property is leviable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 property. Immovab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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 'goods' liable to exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty. Since immovable property is neither 'service' or 'goods' as referred to above, input credit cannot be taken. X X X X Extracts X X X X X X X X Extracts X X X X
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