Service Tax Refund Eligibilty

[CLARENCE PEREIRA]

We are Exporters of Leather Garments & availing Duty Drawback.

We are paying rent for one of our premises for which Service Tax is charged

On another premises we have let out the same on Rent & charging Service Tax.

Can the service Tax credit of the first premises be set off against the service tax due of the second premises?

[NEERAJ KUMAR, RANCHI]

In my opinion it can be done.

[YAGAY andSUN]

It can be set off.

[CLARENCE PEREIRA]

The Custom authorities have held up Duty Drawback on the grounds that I cannot take Service Tax Credit if I takke Drawback.

Service Tax credit is only available on 16 specified services as per Not. No.17/2009 dt. 07.07.2009

My query is does Service Tax on Rent comes under these services?

AI Summary

Service tax credit eligibility on rent questioned: whether rental service qualifies for input set-off alongside duty drawback. Exporter paying service tax on a rented premises seeks to set off that service tax credit against tax due on another premises let out on rent; customs have withheld duty drawback asserting incompatibility of taking service tax credit with claiming drawback. The operative question is whether service tax on rent is among the specified taxable services under the cited notification, thereby affecting eligibility for input credit and set-off alongside duty drawback.