CENVAT CREDIT ON RENT

[Rajeev Khulbe]

GOOD EVENING TO ALL EXPERTS,

I AM AGAIN HARE TO GET YOUR VALUABLE REPLY. EXPERTS OUR HEAD OFFICE IS SITUATED IN DELHI AND RENTED. WHICH RENT IS PER MONTH IS 1 LAKH. MY QUESTION IS THAT CAN WE TAKE CENVAT CREDIT OF SERVICE TAX IF BILL IN THE NAME OF BRANCH ( FACTORY)

AI Summary

Cenvat credit on renting services requires demonstrable nexus to manufacture and correct ISD invoicing for entitlement.
Cenvat credit on service tax for renting immovable property hinges on use "in or in relation to" manufacture and on procedural compliance: if the service is exclusively for a factory and invoices are in that factory's name, the factory may claim credit; otherwise the head office must be registered as an Input Service Distributor and common credits apportioned under the Cenvat Credit Rules to permit lawful distribution and reduce litigation risk.