SERVICE TAX CREDIT

[SURYAKANT MITHBAVKAR]

We have registered under Service Tax Act under category as Renting Immovable Property.

We had issued service tax Invoice with service tax against rent receivable from our tenants.

Since we are proprietory concern can we take input service tax credit such as professional service

rendered by our consultants,etc.

Can we adjusted that input credit against our service tax payable on Rent receivable from tenants.

Pl. advice us.

[MUKUND THAKKAR]

Sir,

you are not specify service which services rendered by you.

[Mahir S]

Yes, provided the services rendered to you are specifically in relation and having nexus to renting of immovable property services,

AI Summary

Service tax credit available when input services have direct nexus to renting immovable property services, subject to specification.
A proprietory concern registered for Renting Immovable Property may claim input service tax credit for professional or other input services only if those services are specifically related to and have a clear nexus to the renting-immovable-property service; the taxpayer must specify the nature of the input services to determine eligibility for adjustment against service tax payable on rent receipts.