Renting of Immovable Property

[PARVEEN ARORA]

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 

 

 

 

AI Summary

Cenvat credit apportionment: credit allowed to extent of use for renting services; excluded where maintenance qualifies as works contract.
CENVAT credit on inputs, capital goods and input services is available only to the extent they are used in relation to provision of the taxable output service; where maintenance charges are billed for an entire building, credit may be proportionately allocated by demonstrating one-to-one correlation with the output (for example by area-based allocation for rented portions). If maintenance qualifies as a works contract, input service credit is not available for that portion.