banner_ad

cenvat credit of service tax

Queries 1895 views 5 replies

 One of our clients is paying lease rentals on a restaurant taken on lease by him. he has to pay service tax @ 12.36 % on it. please suggest some mode by which he can take the credit of the service tax paid on lease rentals. He pays VAT on the goods purchased by him but it is not allowed to set off the VAT against the service tax liability. So please suggest some means by which the service tax liability can be reduced to minimum. The lease rentals are being paid for the complete set up which includes crockery, furniture and other things.

 

Replies (5)

Service tax can be set off against service tax and excise. Service tax cannot be adjusted against VAT as VAT is a state tax and Excise is Central Tax. 

Hello Sir,

Can you explain me the procedure for claiming input credit of service tax against excise duty paid, can additional customs duty paid be availed for input credit of service tax. ?

Hi Mukesh

 

Service tax credit can be set off against service tax payable not with any other tax liability.

 

Mr. Jyoti,

I am afraid but you are totally wrong. Input Service credit is a part of cenvat Credit & it can be utilised for the payment of Both Output Service Tax as well as for Excise Duty Liabilty as told by Mr. Swaminathan.

For further clarification,please  refer Rule3(4) read with Rule3(1) of Cenvat Credit Rules,2004

 

Mr. Mukesh,

I am not so clear with your query. If your Client is paying Lease Rent, in such scenario, it is the liability of Lessor to pay Service Tax.or Is it your Client having some other Service Tax liability? Please clarify


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details