Service tax credit

Is the same property taken on rent and further sub-let?

Please note that Sevice Tax paid on one property cannot be considered as Input service in relation to Service Tax payable on letting out another property, since there is no direct nexus betwen the two.

Please refer as below. Subletting is a mode where the tenant lets out the rented property to another.

Dear Aditya,

There is no need to have a direct nexus with the output Service tax liability. Thus, the Cenvat credit on the services received in the form of renting of immovable property should be available, provided such premises are being used to provide a taxable output service.