how much Service Tax Input credit take(Construction Business

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ravinder singh rawat (Querist)
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27 May 2008 Dear Experts,

i am so confused we are basically real estate construction company. we had just finished our first commercial building. now we are giving the area on lease to diffrent diffrent company on same building and we are charging service tax when we raising rental tax invoice to other company.and same time we are paying service tax on telephone, internet services etc.
how much service input credit we should claim some say we have to claim 100% some say 20% of total input credit we should claim on monthly basis plses suggest your best openion

Thanks & Regards
Ravinder Rawat

Hari Venkata Ramana

Hari Venkata Ramana (Expert)
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28 May 2008 With regard to availing input credit on service tax to be paid under Renting of immovable property, you may refer circular No. 98/1/2008-ST, dated 4.1.2008 wherein it was clarified that, Right to use immovable property is leviable to service tax under renting of immovable property service.Commercial or industrial construction service or works contract service is an input service for the output namely immovable property. Immovable property is neither subjected to central excise duty nor to service tax.
Input credit of service tax can be taken only if the output is a ‘service’ liable to service tax or a ‘goods’ liable to excise duty. Since immovable property is neither ‘service’ or ‘goods’ as referred to above, input credit cannot be taken.

In view of the above clarification you may not avail any CENVAT benefit on your Rental proceeds.

You can avail deduction of Property Tax paid for the relevant period from the rental proceeds subjected to service tax.

Accordingly you may claim service tax re-imbursement from your claim full amount.

ravinder singh rawat

ravinder singh rawat (Querist)
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29 May 2008 Thanks for your Help Sir

Ravinder Rawat

ravinder singh rawat

ravinder singh rawat (Querist)
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29 May 2008 author : ravinder singh rawat
Posted On : 5/27/2008 7:57:09 PM
Dear Experts,

If we taking services from outside the India and service which we are taking outside the india from foreign party is taxable in india or we have to pay tax on behalf of foreign clients.??

second thing if we are taking same services from india then its under tax such as deduction at source or service tax etc. then what we have to do