cenvat credit on rent paid

This query is : Resolved

Indigo (Querist)
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24 May 2010 when a pvt ltd company (not a manufacturer) just a company render sales of spares or some pay rent along with service tax. can it avail cenvat credit on such rental payments?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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24 May 2010 If it uses the premises to provide nay taxable services then it could avail the cenvat credit on rent.

Shyam Lal Naik

Shyam Lal Naik (Expert)
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24 May 2010 Sir,

What would happen, if the service receiver(tenant) is using the premises for trading activity as well as provision of taxable service ?

Eg. A furniture dealer providing interior decorator service as well.

Pragnesh

Pragnesh (Expert)
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24 May 2010 On this case tenant can avail cenvat credit.

VIPIN KUTUMBALE

VIPIN KUTUMBALE (Expert)
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05 February 2011 There should be nexus betweeen input service and output service to avail the cenvate credit, this is the thumb rule for taking credit