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 renting of immovable property is disallowed, restricting use of input service credits for service tax payments.
Exclusion of construction services from the definition of input services applies for services rendered from 1.04.2011; Board Circular No.98/01/2008-ST treats renting of immovable property as neither an output service nor goods, thereby precluding availment of input service credit for renting of immovable property, while credits taken prior to the exclusion date remain subject to pre-existing eligibility but do not change the Circular's classification.