Immovable property - ST credit

[Rajan Rajan]

Dear Sirs,

Whether renting of Immovable property input services are eligible for Service Tax Credit. If any Case laws available for this pls provide.

[DR.MARIAPPAN GOVINDARAJAN]

Please clarify whether you rented the immovable property to others or you got rented immovable property.

[Rajan Rajan]

Dear sir,

We are acting as a service receiver Role(We have got rented Immoveable property from others). Ho Renting, godowns/warehouses, Auditors office, Branch offices, marketing offices etc. All service providers are paying service tax.

[DR.MARIAPPAN GOVINDARAJAN]

In my view whatever immovable properties used in relation to manufacturing or providing of output service will be eligible for CENVAT credit.

[Mahir S]

Yes sir, you have to decide its eligibility based on its nexus/relationship with you manufacturing /output services

AI Summary

Service tax credit eligibility depends on nexus between rented immovable property and the recipient's manufacturing or output services. Rent paid for immovable property may qualify as an input service for Service tax credit if the rented premises are used in relation to manufacturing or providing taxable output services; eligibility depends on the factual nexus between the immovable property services and the recipient's output activities, and the claimant must demonstrate that relationship.