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.

AI Summary

Cenvat Credit Eligibility for Input Services in Leasing: Must Show Clear Nexus Between Input and Output Services. A client, a manufacturing unit also providing renting services for commercial properties, inquired about the eligibility to avail Cenvat Credit on input services related to leasing properties. The client seeks clarification on whether Cenvat Credit can be used for service tax payments for sub-leased properties and for providing renting services. The response indicated that to avail Cenvat Credit, there must be a clear nexus between the input and output services.