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Cenvat on municpal tax paid

Gowtham (Accounts Manager ) (89 Points)

13 May 2016

i am paying service tax on rent .can i a avail municipal tax as Cenvat Credit while paying service tax

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3 Replies

CA RAHUL AGRAWAL (Assistant Manager-Service Tax) (1733 Points)
Replied 13 May 2016

Please refer notification No. 29/2012.

Chinmay Rajesh Shah (CA Practice ) (21 Points)
Replied 13 May 2016

Property taxes paid for the property which is given on rent and service tax is chargeable, shall be allowed set off of the property tax paid, however intimation of set off to the department is advisable.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 14 May 2016

The municipal taxes paid on a property are deductible from the total rent recived and the balance offerred for servic etax. No credit of municiapl taxes towards servic etax premissible.