Cenvat credit on renting of immovable property

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M.PORNIMA (Querist)

27 December 2014 Dear experts, whether can we take cenvat credit on service tax paid on renting of immovable property? if yes, is it that cenvat credit can be claimed only against the similar service of renting immovable property or with any other services ? Thanks in advance experts

Guest

Guest (Expert)

27 December 2014 Ya you can take credit of service tax paid on rent & even set off the same with any service tax or excise liability..There are no such restrictions..

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CA Kumar Mukesh

CA Kumar Mukesh (Expert)

28 December 2014 Dear Purnima as per rule 2(I) of Cenvat Credit Rules 2004, Input service means services used by service provider for providing output services.

Therefore, it does not means that service received and provided should be same for the purpose of claiming of Service Input.

The main cruxes of this definition that services should be used for providing of output services.
If the immovable property is used by service provider for providing of out services he will for claiming service input.

Note: you need to go thorough with definition of output services under rule 2(p) of said rules.

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