Dear All,
My client is bank, paying 1 lakh rent per month to landlord since April 2007.
Last month Landlord registered with Service Tax department and raised invoice to bank and demanded Service Tax on rent at respective rates since October 2007 to till date as he is opting for VCES.
Can bank take Credit of Service Tax payable to landlord since Oct. 2007 till date ?
Pl. guide. Pl. send if any case law or circular/notification available.
Thanks.
Sumeet Tholle
CA, Aurangabad.
Bank Can Claim CENVAT Credit on Service Tax Paid Under VCES with Proper Documentation A client, a bank, has been paying rent since April 2007. The landlord, recently registered with the Service Tax department, issued an invoice demanding service tax from October 2007 onwards under the VCES. The query is whether the bank can claim CENVAT credit for this service tax. Responses indicate that the bank can avail CENVAT credit on the supplementary invoice, as supported by VCES guidelines and CBEC FAQs. It is advised to obtain the service tax invoice and proof of payment from the landlord to claim the credit in the bank's returns. (AI Summary)
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