TaxTMI 
TaxTMI 
Dear Sir,
Cenvat Credit of service tax paid under reverse charge on legal services can be utilize against liability to pay service tax on renting of immovable property ? we are not output service provider nor manufacturer
Cenvat Credit
26 Nov 2013 
4 Replies 
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Cenvat credit eligibility: input-service qualification and registration determine use against renting-of-immovable-property tax liability.
Cenvat credit of service tax paid under reverse charge for legal services can be utilized against renting of immovable property only if those legal services qualify as an input service for the renting output service and if the recipient is eligible to take Cenvat credit (e.g., registered as a service provider, manufacturer or dealer). If the recipient is not an output service provider or otherwise ineligible, credit cannot be availed, although service tax remains payable under the reverse charge mechanism. (AI Summary)
Cenvat credit of service tax paid under reverse charge for legal services can be utilized against renting of immovable property only if those legal services qualify as an input service for the renting output service and if the recipient is eligible to take Cenvat credit (e.g., registered as a service provider, manufacturer or dealer). If the recipient is not an output service provider or otherwise ineligible, credit cannot be availed, although service tax remains payable under the reverse charge mechanism. (AI Summary)