Factory Rent

[Guest]

Dear Sir,

My Company is Excise Unit, we are paying service tax 12.36 percent against rent bill,

kindly suggest can we take credit ?

Regards

Susant

[manju nath]

Yes sir you can avail service tax credit paid on rent as per cenvat credit rules.

[Guest]

Provided the entire area is declared as manufacturing area in the plans submitted while obtaining registration. That is if any trading activity is carried out from the rented area, then proportionate credit is to be taken.

AI Summary

Cenvat credit on rent allowed for manufacturing units; must be proportionate if premises are used for trading. Cenvat credit is available for service tax paid on rent by an excise manufacturing unit where the rent-related service is used for manufacturing; if the entire rented area is declared as manufacturing area in registration plans, full credit may be claimed, but if any part is used for trading or non-manufacturing activities, credit must be apportioned and only the manufacturing-use portion may be availed.