Can we take cenvat credit on rent of premise

1964 views 2 replies

 

Dear sir/mam,

we are dealing in trading activities and also provider of more than one taxable services out of one is like tranport of goods by road on which we claim abatment while paying service tax. Presently we are paying rent with service tax of premise which are used both in trading activities and providing output services. Please guide me how to take credit of service tax paying on rent and in what proportion. if there is also any rule, notification,or any circular then also let me know about it. Please reply as earliest possible.

 

 

Replies (2)

Yes you can take Input Credit on Service tax paid on Rent service but as you are doing Trading activities also in same premises so after taking of full credit of service tax amount, reverse proportionate amount as per Cenvat Credit Rule 6 (3A).

In addition to what Mr. Pradeep has said... you cannot utilise cenvat for payment of service tax on goods transport..it has to be discharged in cash...


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