Input on own use

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This query is : Resolved

atul kumar goel (Querist)

02 November 2012 A Pvt Co. has taken space measured 4000 Sq fit on rent at Rs. 400000 PM and discharging service tax on the same to the landlord. Further, 3000 sq fit has been letout to other company at Rs. 450000/- and remaining 1000 sq fit is being used by it for its own office and own sale outlet. Whether ST input will be available for whole amount of rent i.e on Rs. 400000 (4000 SQ fit)against the discharge of liability on Rent received or input will be available only on 3000 sq fit i.e input on 1000 sq fit used for itself will not be available.
Thanks

CA Kamlesh Dama

CA Kamlesh Dama (Expert)

02 November 2012 Dear Atul Kumar Goel

The credit of entire service tax paid to the landlord will be available for utilisation.
You can use the credit for Service Tax liability arise in account of sub letting.

Pradeep Nainawati

Pradeep Nainawati (Expert)

02 November 2012 It is advisable to not to utilise CENVAT of full full rent as rent paid for 1000 Sq ft which is utilised by pvt. co for his own office.

atul kumar goel

atul kumar goel (Querist)

03 November 2012 Sir, because of two contrary view on the concerned query, whether there is any case law or provision in respect of any one view.