Construction of Godown for providing renting service

[Mehul Pandya]

We are constructing a Godown for providing renting of immovable service. 55% of work is completed and contractors have issued us the bill including service tax. we have also taken service tax registration.

now my query is that can we take credit of the input service received., If yes, do we have to mention the amount of cenvat credit in next return even though we are not providing any services.

AI Summary

CENVAT Credit eligibility depends on taxable construction services and a reasonable nexus with renting of immovable property.
CENVAT credit on service tax paid for construction of a godown is available when construction services are taxable and there is a reasonable nexus between the construction (an input service) and the renting of immovable property (the output service). Construction for post harvest storage of agricultural produce commenced on or after 1 July 2012 is exempt from service tax and thus does not give rise to CENVAT credit. Registrants must file returns and indicate any credit availed; nil returns are required if no services are provided in a period.