Cenvat Credit, Service Tax

[Rajat Jain]

Dear Sir,

Cenvat Credit of service tax paid under reverse charge on legal services can be utilize against liability to pay service tax on renting of immovable property ? we are not output service provider nor manufacturer  

Posts / Replies

[Brijesh Verma]

You need to check whether legal services availed by you can satisfy the definition of being an "Input Service" for the output Service namely "Renting of Immovable Property"

If yes, definitely you can adjust.

[Rajat Jain]

Thanks for Reply...

Whether legal services availed for proceeding against prospective buyers who default from their sales contracts are satisfy the definition of "Input Service"? whether upto the place of removal applicable in this case ? 

[Vaidyanathan Venkat Raman]

For availing service tax or input credit, one need to be registered either as a manufacturer, dealer or service provider. In the instant case, it seems you are neither a service provider nor a Manufacturer, as such I think credit is not eligible for you. When there is no credit, question of utilization does not arise.

[Ashok Jogalekar]

If you are not a output service provider then you are not eligible for CENVAT credit. But you are liable to pay service tax on the services received by you for which reverse charge basis service tax is applicable.