TaxTMI 
TaxTMI 
TaxTMI 
Whether Cenvat credit can be claimed on Service Tax paid on rent towards Guest House maintained by the Company in different Cities?
Cenvat credit of Service Tax
Aitha RajyaLakshmi
Eligibility of Cenvat Credit on Guest House Rent Denied; Requires Clear Nexus Post-April 2011, Rule 2(l) CCR 2004 Cited. A query was raised about the eligibility of claiming Cenvat credit on service tax paid for rent on guest houses maintained by a company in various cities. Responses indicated that such credit is not eligible because the rent is not used in manufacturing excisable goods or providing output services. It was noted that after April 1, 2011, claiming this credit became contentious, requiring a clear nexus between input and output services. Additionally, changes in rule 2(l) of CCR 2004 further complicated eligibility. For significant amounts, seeking an Advance Ruling or representation to CBEC and TRU was suggested. (AI Summary)