Cenvat credit for renting of immovable property

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Forum Sonpal (Querist)

17 April 2014 My client charges service tax on renting on Immovable properties.
Is he eligible to take CENVAT credit of service tax payments made to Builders for under construction properties purchased by him ??

Annu Agarwal

Annu Agarwal (Expert)

17 April 2014 As per my view with reference to the defination of input services under Rule 2(l) of CCR 2004 cenvat credit of servicetax paid for under construction property is not admissible .
therefore you cannot take the credit of service tax paid to bilder while paying service tax on renting service.

Forum Sonpal

Forum Sonpal (Querist)

17 April 2014 Can you please post rule 2(I) of CCR 2004 and highlight the point from where you have derived your interpretation ?

Sandeep Dharar

Sandeep Dharar (Expert)

17 April 2014 No u can't take Cenvat Credit for that.

Annu Agarwal

Annu Agarwal (Expert)

17 April 2014 Relevant clause of Rule 2(l) of CCR
but excludes services, -

(A)service portion in the execution of works contracts and construction services including services listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services), in so far as they are used for- (a) construction of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or

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