Service tax input

817 views 5 replies

I have a client. Its only income is "Income from Immovable Property". It pays Insurance Premium (along with Service Tax) which is reimbursed by the tenants fully.

The client wishes to take Cenvat Credit of the Service Tax . It does  not have any other insurance expenditure.

Can the credit be taken??

Replies (5)

The provider of any output service is eligible to claim credit of the input services. in your case, the person is not an output service provider. 

On the other hand, if he is an output service provider then he can take cenvat credit of the same. 

Dear Prateek,

My client jus provides his properties on rent. Moreover, in this case entire expenditure of Insurance Premium (along with Service Tax) is reimbursed by the tenants i.e there is no Insurance Premium Expenditure in the books of my client. Still the client is seeking to take credit of Service Tax paid on Insurance Premium.

As per the facts of the case, your client is not eligible to claim credit since he is not actually paying the service tax. The tenants are paying the service tax amount, as such, making the builder ineligible to claim credit,.

If the expenditure is not booked in the accounts, there is no chance of getting CENVAT benefit. Your client has already received the entire premium amount which includs service tax also.  It means he got the benefit of cenvat from tenant.

 

rengaraj r.k

Also Mr. Amit, if the tenant has paid the actual insurance premium including the service tax amount to your client, then he will ask for the receipt of the sdame as well from him. So your client cannot avail the credit as he has no receipt of the same with him anymore.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
22 May 2026
Sr. Financial Analyst - Consolidation

Search Synergy

Mumbai

CA

View Details