input on renting imoveble properties

[pankaj joshi]

my godwon on rent basic and recived rent and pay service on rent i am input on service tax paid to security service, telephone, insurance for godwon, pl

[CA Rachit Agarwal]

You can avail the Cenvat Credit for the service tax paid on the input services- security service, telephone, insurance.

As per Rule 3(1) of Cenvat Credit Rules, 2004 which allows the provider of taxable services to take credit and further Rule 3(1)(ix) of Cenvat Credit Rules, 2004 allows for credit to be take the service tax paid.

[Brijesh Verma]

Dear Mr. Joshi,

Though the query ain't very clear but as far as I could understand, you have given your godown on rent and receive Service Tax on such rent and at the same time pay service tax on security service, telephone, insurance etc. Your question is whether you can avail Cenvat Credit on such services or not.

I would suggest you to please check the nexus between the input & output services. Though one-to-one correlation is not necessary now since 2004 but still the input services should be 'used for providing output services'. In the contrary situation, availability of Cenvat is dangerous.  

AI Summary

Cenvat Credit Allowed on Service Tax for Security, Telephone, Insurance Services Under Rule 3(1) of Cenvat Credit Rules 2004 A user inquired about availing Cenvat Credit on service tax paid for security, telephone, and insurance services related to a rented godown. An expert clarified that under Rule 3(1) of the Cenvat Credit Rules, 2004, credit is permissible for service tax paid on input services. Another contributor advised verifying the connection between input and output services, noting that while a direct correlation is not required since 2004, input services should still be used for providing output services to safely claim Cenvat Credit.