Eligible ? - CENVAT Credit on rent

[Sumeet Tholle]

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.

 

 

AI Summary

CENVAT credit on rent: eligible where supplier issues a supplementary invoice and tax is paid with documentary proof.
CENVAT credit on service tax charged on rent is claimable where the service provider issues a supplementary invoice and the tax is paid; this position is reflected in the VCES FAQ. The recipient must obtain the service tax invoice and challan as documentary proof and claim the input credit in the appropriate returns, timing the invoice date to permit claim within the relevant quarter.