Input credit of Service Tax paid on purchase of property

if the property is the the registered business address and service providing place then YES, but its impossible as the service tax paid on properties can not get service tax number before the registration at the business place in question, 

so its inadmissible. 

In respect of commecial construction, the builder is liable to service tax and he can recover the tax from the buyer. If the buyer is using the premises for providing taxable service or using the same as factory for manufacture of excisable goods , cenvat credit can be availed. However, there is a CBEC circular which clarifies that cenvat credit in rspect of works cotract service is inadmissible . This clarfication is inconsistant with the statute and  litigations are pending on this question.

The credit for any eligible input service cannot be denied as long as the same is used in or in relation to manufacture or clearacen of goods or used for business or used for provding taxable services.

Circulars are not binding in law if they are not in line/ accordacne with the law. They cannot lay down any new law.

1. Builder is liable to pay service tax 

2. Builder can recovered srvice tax from buyer.

3. Buyer can take the cenvat credit agnst the service tax charged by builder. But Builder should be registered in     service     tax.

4. Whn Service Provider shouyld not registered. He doesn't take the service tax amount from buyer.

Hi, CA firm purchased one office from a builder. Builder charged 3.709% service tax. Whether CA firm can take the service tax credit of the property purchased.

Firm charges its clients service tax on professional fees.

Kindly reply with reference to cenvat credit rules and case laws if any.

Regards

Hi, CA firm purchased one office from a builder. Builder charged 3.709% service tax. Whether CA firm can take the service tax credit of the property purchased. Firm charges its clients service tax on professional fees. Kindly reply with reference to cenvat credit rules and case laws if any.

Regards