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Service tax - input credit

Queries 751 views 1 replies

manish kedia

yet not

319 Points Joined August 2011

DEAR ALL

MY CLIENT HAS RENTED ITS PREMISES IN MALL X TO ANOTHER PARTY. HE IS RECEIVING MAINTENANCE CHARGES(Rs. 16854/- INCLUDING SERVICE TAX) WHICH IS REIMBURSEMENT OF MAINTENANCE CHARGES OF THE MALL. MY CLIENT IS PAYING THE SAME TO THE MALL. NOW THE TENANT IS ASKING TO ISSUE A BILL FOR MAINTENANCE AS HE IS NOT BEEN ABLE TO TAKE CREDIT OF SUCH SERVICE TAX PAID ON MAINTENANCE BECAUSE BILL IS IN MY CLIENT NAME. PLEASE SUGGEST THAT IF HE ISSUE BILL THEN WHETHER HE CAN TAKE CREDIT OF SUCH SERVICE TAX. IF THERE IS ANY OTHER WAY LIKE NOC , ETC THEN PLEASE GUIDE.

Replies (1)

Hadi Husain Husaini

IDT Consultant

99 Points Joined March 2011

Service tax paid on security services received for property on rent, service tax paid on society maintenance charges of rented property would be allowed as Cenvat credit against service tax payable on renting of immovable property.

The CENVAT Credit on service tax on maintenance charges can be availed only by a person provideing services falling under purview of " renting of immovable property", if such maintenance charges are taken for maintaining the said immovable property.