Credit on Renting of Immovable Service

[Rajesh Sharma]

One of my client is providing renting of immovable Property services i.e. shops and showrooms have been given on lease/rent. My issues is regarding availment of Cenvat Credit on input services i.e.:

(i) Can Cenvat Credit be availed on input services while constructing mall and utilizing the same for payment of service tax in respect of Renting of Immovable Property services provided by us?

(ii) Can any type of Cenvat Credit be availed on input services in respect of providing the Renting of Immovable Property services; though Board circular says Cenvat Credit cannot be availed in respect of Renting of Immobavle services.

Though my view is also that we cannot avail Cenvat Credit on input services in respect of Renting of Immovable services.

Your quick response with some judgdement against/favour will be appreciated.

With regards.

 

AI Summary

Cenvat Credit on Construction Services Excluded for Renting Immovable Property Post-April 1, 2011, Per Cenvat Credit Rules A client providing renting services of immovable property, such as shops and showrooms, inquired about the eligibility of availing Cenvat Credit on input services used during the construction of a mall. The discussion clarified that Cenvat Credit on construction services is excluded from input services as of April 1, 2011, according to Cenvat Credit Rules. Furthermore, a Board Circular specifies that input credit is only applicable if the output is a taxable service or goods, which excludes immovable property. Credits taken before April 1, 2011, may be eligible, but not for renting services, as they are not considered output services.