Service Tax on immovable property

[Ashok Chopra]

1.  Service tax on rent of retail show room is not paid since last two years.  now land lord is asking to pay arrear.  can i take benefit now in my other business of manufacturing.  name of the company and code number is same and all branches are registered in registration certificate.

AI Summary

Landlord Demands Unpaid Service Tax on Retail Showroom; CENVAT Credit Possible if Linked to Manufacturing Business. A query was raised about unpaid service tax on the rent of a retail showroom over the last two years. The landlord is now demanding the arrears. The inquirer asked if they could offset this tax against their manufacturing business, given that both businesses share the same registration. The responses indicated that the service tax paid can be utilized if there is a direct or indirect link between the showroom and the manufacturing activities. To claim CENVAT credit, a nexus with manufacturing must be established. Additionally, interest on arrears would need to be paid at specified rates.