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Renting of Immovable Property - Service Tax

#1 Issue Id: - 105884
Dated: 16-7-2013
By:- PARVEEN ARORA
Renting of Immovable Property

  • Forum

Sir

One of the Limited company has given a portion in his Building Premises on rent 

Although all maintenance Charges bill were received for entire building (No segregation in bill was done)

on what basis I have to proportionate the cenvat credit on service tax payable on rent.

 

Kindly give your valuable opinion.

Thanks & regards 

 

 

 

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#2 Dated: 16-7-2013
By:- CA BALRAM PANDEY

Dear Arora Ji,

As per rule 4(7) of Cenvat Credit Rule, 2004, you can take the CENVAT Credit on Inputs, Capital Goods & Input Services, if they are in or in relation to Provision of output Services. Hence you need not to segregate maintenance and rent separately, rather you have to justify the one to one correlation with output & Input of Service Tax.


#3 Dated: 16-7-2013
By:- PARVEEN ARORA

Dear Pandey ji,

only  taxable service which company is providing is "Renting of Immovable  Property"

actually i have the doubt regarding the portion of cenvat to be claim ,

position was :  75 % of building was given on rent and 25 % was with company.

if company make one to one correlation , then it has to take cenvat credit of 75 % of service tax paid on bills of maintaince.

75% and 25 % was calculated on the basis of area (square feet) 

Kindly give your  valuable opinion

Thanks and regards


#4 Dated: 17-7-2013
By:- CA BALRAM PANDEY

 Yes, Arora Ji you are right now, CENVAT Credit on inputs, Capital Goods & Input Services will be available to the extent they are used in providing output services. Hence CENVAT shall be available only on 75% the Service Tax paid on maintenance bill. One thing you please note down that if the maintenance is of the nature of Work Contract then no CENVAT on input services will be available to you. i a giving you a link please follow:-

For further query you can mail me at pande.balram@gmail.com

Thanks & Regards


#5 Dated: 19-7-2013
By:- PARVEEN ARORA

Dear Pandey ji,

Kindly provide me the link for non-availment of credit on work contract .


#6 Dated: 23-7-2013
By:- CA BALRAM PANDEY

 

Credit on Input Service Whether Credit can be taken against Output Service
Works Contract(Including Maintenance or Repair) Construction of Complex Renting of Immovable Property
Works Contract

Yes

Yes

No

Man Power Supply

Yes

Yes

Yes

Commission/Brokerage  

Yes

Yes

Professionals/Legal Consultancy

Yes

Yes

Yes

Telephone Bills

Yes

Yes

Yes

Other Services

Yes

Yes

Yes

     

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