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Service tax

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Biswajit Dey

Working on Accounts and Taxation

23 Points Posted on 02 March 2015

Dear Sir,

We are running a hotel in lease with all service like, accmodation , restaurent and mandap keeper ect and collecting service tax at abatement rate . The Lessor has charged service tax on rent of Rs.300000/-+ ST 12.36 % .

Now my question whether can we avail cenvat credit of service tax paid on lease rent and can adjust the same with service tax collected.

Pleaase provide your valiable solution.

Thanks

Biswajit Dey

Replies (2)

Gagan Deep Singh

CHARTERED ACCOUNTANT

1039 Points Posted on 02 March 2015

Yes. For accomodation and mandap keeper services you can avail credit of input services under Notification no. 26/2012 whereas for restaurant services you can avail credit under rule 2C of valuation rules 2006.

please note that you cannot avail credit of input paid on goods here.