Utilisation of Cenvat Credit

[kiran pai]

Dear Sirs,

We are the manufacturer of textile fabrics  having manufacturing unit at Silvassa and registered office at Mumbai. We had some let out property in Mumbai and around Maharashtra.  We have opted for  centralised registration certificate of Service Tax for GTA and Renting of Immovable Property service.  Now our queiry is,  can we avail the cenvat credit from the input credit and input service credit.  If yes shall we utilise the said cenvat credit for the payment of Service Tax on the Renting of Immovable property service for the concerned month.  Please reply me.

Thanks,

Kiran Pai. 

AI Summary

Textile Manufacturer Clarified on CENVAT Credit Use for Renting Services; Cautions Advised on Recent Amendments. A manufacturer of textile fabrics, with a manufacturing unit in Silvassa and properties in Mumbai and Maharashtra, inquired about the utilization of CENVAT credit for service tax on renting immovable property. The company holds a centralized registration for service tax related to GTA and renting services. In response, it was clarified that CENVAT credit can be utilized for the payment of output liability on renting services, but not for outward GTA, which must be paid in cash. It was also advised to be cautious with CENVAT credit claims due to recent amendments, as incorrect claims could result in penalties.