CENVAT credit, Service Tax

[Pawan Barnwal]

Can we avail cenvet credit on service tax paid on rent for out sourcing business??

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

Please explain what is meant by rent for out sourcing business.

[KASTURI SETHI]

Basic criteria is that ST must be paid on input service and that input service should be used for providing taxable output service. Input service should conform to the definition under Rule 2(I) of Cenvat Credit Rules. It should not fall in the exclusion clause. Presuming that you are talking about ST paid on renting of premises, 'renting of immovable property services' is not in the exclusion category. Now you are to see whether you fulfill above parameters.

[Ganeshan Kalyani]

Pls elaborate your query a bit more so as to enable us to present our views on the same. However if you follow the guidance of Sri Kasturi Sir your query will be resolved. Thanks

[MARIAPPAN GOVINDARAJAN]

What is the service provided by you? For what purpose you are paying rent?