CENVAT credit

[Pawan Barnwal]

Can we avail cenvet credit on service tax paid on rent for out sourcing business??

[Rajagopalan Ranganathan]

Sir,

Please explain what is meant by rent for out sourcing business.

[KASTURI SETHI]

Basic criteria is that ST must be paid on input service and that input service should be used for providing taxable output service. Input service should conform to the definition under Rule 2(I) of Cenvat Credit Rules. It should not fall in the exclusion clause. Presuming that you are talking about ST paid on renting of premises, 'renting of immovable property services' is not in the exclusion category. Now you are to see whether you fulfill above parameters.

[Ganeshan Kalyani]

Pls elaborate your query a bit more so as to enable us to present our views on the same. However if you follow the guidance of Sri Kasturi Sir your query will be resolved. Thanks

[DR.MARIAPPAN GOVINDARAJAN]

What is the service provided by you? For what purpose you are paying rent?

AI Summary

Cenvat credit on rent services depends on use as input service for providing taxable output services and exclusion rules. Cenvat credit on service tax paid for renting of premises depends on whether the service is an input service used for providing a taxable output service and whether it falls within exclusion clauses under the Cenvat Credit Rules; renting of immovable property is not per se excluded, so admissibility turns on the taxpayer's service activity and the purpose/use of the rented premises.