CENVAT credit on service tax charged by estate agent

[Yatin Bhopi]

We are manufacturer of organic chemicals. We are in the process of sale of our commercial property which was previously used as office premises, but this office is not in use since last 4-5 years. For the purpose of selling this property we have hired service of estate agent.  Now he has arranged for the sale of this property.

My query is:  Is CENVAT credit admissible on service tax charged by estate agent?

[Rajesh Nathoo]

Dear  Mr. Bhopi,

  Legislature is already reuctant to allow credit on office related expenditures to manufacturers .

In ur case , credit related to sale of office premises   by no strech of imagination has nexus with manufacturing activities .

So, I don,t think credit is admissible .

AI Summary

CENVAT Credit Likely Inadmissible for Estate Agent Service Tax on Sale of Unused Office Premises A manufacturer of organic chemicals inquired about the admissibility of CENVAT credit on the service tax charged by an estate agent for facilitating the sale of a commercial property previously used as office premises. The office has been unused for 4-5 years. The response indicated that the legislature is generally reluctant to allow credit on office-related expenditures for manufacturers. Since the sale of office premises has no connection with manufacturing activities, it is unlikely that the CENVAT credit would be admissible in this case.