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Service Tax on Rent

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shibu (Querist)
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01 June 2011 Hello,
Can anyone help me.
A Company pays rent amounting to Rs 1 lac per month. The Lessor charges service tax on rent @ 10.3%. Is Lessee eligible to get credit of the Service tax like VAT credit adjustment ? Or is it a pure expense to the lessee company. Any forms to asked from the lesser for payment of service tax .

Ca Aashish Upadhyay

Ca Aashish Upadhyay (Expert)
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01 June 2011 Dear Shibu

You may take Cenvat credit for the ST Paid on rent. The only condition is that should have certain liablities to pay either under Central Excise or Service Tax

regds

aashish

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shibu

shibu (Querist)
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01 June 2011 Thank you ,
Yes,The company has a liability towards customs duty foregone on duty free import of materials because it was an EOU. Is it possible to adjust? Or it`s a pure expense ?

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