Service tax query

yes you can set offf

no credit is available to you...... because there is no any relatioship of input service with output service....

credit is available only of input service.... where service does not cover in definition of input service then there is no question of credit.

as per ccr rule..... "input service" means any service,-

(i) used by a provider of taxable service for providing an output service;

and here wheather input service tax paid on frieght... telephone bills etc are used for providing output service  ( rent).......

this is the logic

"input service" means any service,-

(i) used by a provider of taxable service for providing an output service; or

(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,

and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

and hence you cannot claim setoff and also you cannot claim refund of the service tax paid as your are not exporting your services