Service Tax Credit on Rent.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2011
Dear Sir,
We seek the following clarification.
We are engaged in the manufacturer of CI and SGI Castings falling under Chapter 73. These Castings are subjected to machining in our factory or on job work basis from outside. The goods are cleared on payment of duty as Castings or Auto Mobile parts as the case maybe. We avail Cenvat credit of Central Excise duty on Inputs, Capital Goods and Service Tax credit of GTA.
Three years back we hired a factory shed situated at a distance of 1 km from our factory. We have some machines in this shed for the purpose of machining. We get our machining done on our Castings from this shed also. This unit is recognized as Unit No. I (Machining Divn,), Since no manufacturing activities are undertaken in this shed no Excise registration was obtained. We send Castings under Rule 4(5)(a) challans and get them back on job work basis. The workers in this unit are our workers and salaries are paid to them by us.
The owner of the shed charges us Rent and recovers Service Tax also through his bills. Since we are manufactures of excisable goods, we feel that we can avail the Cenvat Credit of Service Tax on rent paid by us. The local officers are objecting to this. Kindly offer your views.
We seek the following clarification.
We are engaged in the manufacturer of CI and SGI Castings falling under Chapter 73. These Castings are subjected to machining in our factory or on job work basis from outside. The goods are cleared on payment of duty as Castings or Auto Mobile parts as the case maybe. We avail Cenvat credit of Central Excise duty on Inputs, Capital Goods and Service Tax credit of GTA.
Three years back we hired a factory shed situated at a distance of 1 km from our factory. We have some machines in this shed for the purpose of machining. We get our machining done on our Castings from this shed also. This unit is recognized as Unit No. I (Machining Divn,), Since no manufacturing activities are undertaken in this shed no Excise registration was obtained. We send Castings under Rule 4(5)(a) challans and get them back on job work basis. The workers in this unit are our workers and salaries are paid to them by us.
The owner of the shed charges us Rent and recovers Service Tax also through his bills. Since we are manufactures of excisable goods, we feel that we can avail the Cenvat Credit of Service Tax on rent paid by us. The local officers are objecting to this. Kindly offer your views.
15 May 2011
to get credit, include that place in your service tax registration, by virtue of centralized registration.
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