Renting of Immovable Property

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Renting of Immovable Property
Query (Issue) Started By: - PARVEEN ARORA Dated:- 16-7-2013 Last Reply Date:- 23-7-2013 Service Tax
Got 5 Replies
Service Tax
Sir One of the Limited company has given a portion in his Building Premises on rent Although all maintenance Charges bill were received for entire building (No segregation in bill was done) on what basis I have to proportionate .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the cenvat credit on service tax payable on rent. Kindly give your valuable opinion. Thanks & regards Reply By CA BALRAM PANDEY: The Reply: Dear Arora Ji, As per rule 4(7) of Cenvat Credit Rule, 2004, you can take the CENVAT Credit on Inputs, Capital Goods & Input Services, if they are in or in relation to Provision of output Services. Hence you need not to segregate maintenance and rent se .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... parately, rather you have to justify the one to one correlation with output & Input of Service Tax. Reply By PARVEEN ARORA: The Reply: Dear Pandey ji, only taxable service which company is providing is "Renting of Immovable Property" actually i have the doubt regarding the portion of cenvat to be claim , position was : 75 % of building was given on rent and 25 % was with company. if company .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... make one to one correlation , then it has to take cenvat credit of 75 % of service tax paid on bills of maintaince. 75% and 25 % was calculated on the basis of area (square feet) Kindly give your valuable opinion Thanks and regards Reply By CA BALRAM PANDEY: The Reply: Yes, Arora Ji you are right now, CENVAT Credit on inputs, Capital Goods & Input Services will be available to the extent th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ey are used in providing output services. Hence CENVAT shall be available only on 75% the Service Tax paid on maintenance bill. One thing you please note down that if the maintenance is of the nature of Work Contract then no CENVAT on input services will be available to you. i a giving you a link please follow:- For further query you can mail me at [email protected] Thanks & Regards Reply .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... By PARVEEN ARORA: The Reply: Dear Pandey ji, Kindly provide me the link for non-availment of credit on work contract . Reply By CA BALRAM PANDEY: The Reply: Credit on Input Service Whether Credit can be taken against Output Service Works Contract(Including Maintenance or Repair) Construction of Complex Renting of Immovable Property Works Contract Yes Yes No Man Power Supply Yes Yes Y .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... es Commission/Brokerage Yes Yes Professionals/Legal Consultancy Yes Yes Yes Telephone Bills Yes Yes Yes Other Services Yes Yes Yes
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X