Cenvat input credit for taxable and exempted services

Queries 471 views 1 replies

Hi

An entity is providing service to an Embassy ( Exempt from service tax ) which constitutes negligible percentage (1%) of the total services provided  . Remaining services are taxable and tax is being paid on it.Entity has only one registered office on which rent is being paid . 

My query is can the entity take entire input credit on the rent being paid or does it have to take propotionate input credit on the taxable service and for the exempted service ??

Thanks and regards

Mayank

 

Replies (1)

You can take the cenvat credit on service tax paid by rent. But you can take the credit on propotionate way for services used in taxable service only.


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