Cenvat Credit on Renting of Immovable Property Service

[Jignesh Shah]

One of my client is Mfg. unit and providing renting of immovable Property services i.e. commercial offices have been given on lease/sub lease/rent. My client is owner as well as Lessee in various property. My issues is regarding availment of Cenvat Credit on input services i.e.:

(i) Can Cenvat Credit be availed on input services while taking property on lease and utilizing the same for payment of service tax in respect of Renting of Immovable Property services provided by us on sub lease?

(ii) Can any type of Cenvat Credit be availed on input services in respect of providing the Renting of Immovable Property services?

 

Your quick response with some judgdement against/favour will be appreciated.

With regards.

[YAGAY andSUN]

You would have to establish nexus between the input service and output service to avail the CENVAT credit on such services.

AI Summary

Nexus requirement for Cenvat credit: establish clear linkage between input services and renting/subleasing output services to claim credit. Cenvat credit on input services for Renting of Immovable Property services is available only if a demonstrable nexus is established between the input service and the output renting/sub leasing service; without such nexus credit cannot be availed.