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 entitlement for input services may be claimed where inputs are used for providing taxable rent services. Entitlement to Cenvat credit arises where a provider of taxable rent pays service tax on input services such as security, telephone and insurance; under the Cenvat Credit Rules, 2004 such service tax may be taken as input credit, provided the input services are used for providing the output taxable service.