Dear Freinds,
We are a Company engaged in manufacturing of Garments. Apart from paying Service Tax as receiver of GTA Service we were not service provider nor we are registered in excise as garment manufacturer have an option to opt out of excise.
From June 2007 we are also falling under Renting of immovable services for which we have obtained necessary amendment in RC also.
Facts : we have taken two Buildings on Rent (Say Building 1 and Building 2) , we pay Rent plus f Service Tax to Land Lord.
For Building 1 we pay Rent Rs.10 Lacs per month plus service Tax 1.24 Lacs . 75% of this Building is sublet at a Rent of Rs.15 Lacs plus service Tax 1.85 Lacs.
Other building is used exclusively for our own manufacturing facilities. We pay Rent Rs. 8 Lacs plus Service Tax 0.98 Lacs.
Query : Taking Cenvat Credit of only Building 1 we need to pay 1.85 – 1.24 = 0.61 Lacs from our pocket.
can we take Service Tax Credit of Building 2 also as the Service Tax Credit and after taking such credit there will be no liability to pay service Tax.
Best Regds
CAclubindia
