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Service tax on Rented Warehouse outside Factory premises

This query is : Resolved 

27 November 2009 Dear Sir/Madam,
Our Company has taken a rented warehouse outside factory premises for storing our imported raw material (Excisable).

The landlord had charged service tax @ 10.30% and included in his bill and we have paid the rent with service tax.

My point is, are we eligible to avail service-tax input. If so, how and under what section, can we avail input tax credit.

Experts please give your opinions.

Rgds,
T.Ram Mohan, Chennai

27 November 2009 Yes you are eligible to avail service-tax input.

27 November 2009 The service tax has been paid on raw material storage before it has undergone process. Therefore it is input. However, once you manufacture the goods and store it in a premises outside, then it cannot be claimed as input.


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