Renting of Immoveable Property

[Snehal Kulkarni]

Suppose, a person who has multiple Properties which he is providing to other person for commercial purpose. Since the scope of business is huge, he had a Office where all the acccounting of all these rentings are taken care. To run this office, he had taken various equipment ( Capital Goods ) including telephone, internet,computers, softwares, ACs etc. My question is whether the cenvat credit taken ( CVD,SAD etc ) on office equipment can be utilised for payment of Service Tax on the Output service ( renting of immoveable property ) ? Please guide with relevant case law/circular

AI Summary

CENVAT Credit Allowed on Office Equipment for Service Tax on Rental Income if Used Entirely for Business. A query was raised regarding the eligibility of utilizing CENVAT credit on office equipment for paying service tax on renting immovable property. The individual owns multiple commercial properties and operates an office for managing rentals, equipped with capital goods like computers and internet services. The response clarified that if the input services are entirely used for business purposes, CENVAT credit can be claimed. Specifically, credit for input services such as telephone, internet, computers, and software can be used to offset the service tax liability on the rental income.