CENVAT OF SERVICE TAX

[S.C. WADHWA]

An Individual has property in delhi which has been given on rent. As per agreement, rent is inclusive of all taxes present or  furture .Thus, the rent received by individual is inclusive of service tax. Such individual pays service tax out of such rental income. Now, query is whether such individual can avail cenvat of service tax paid on any service availed by him. Is it necessary that such service availed should be in relation to provision of output service or cenvat can be availed on any service whatsoever The income from rent is chargeable to tax under head  Income from House Property'

 

AI Summary

CENVAT credit entitlement: input service must be used in providing the output service to qualify for adjustment.
Whether a landlord receiving rent inclusive of service tax may claim CENVAT credit on procured services: the amended definition of input service requires the service to be used by a provider of an output service for providing an output service; if services fall within this definition the landlord may avail CENVAT credit and adjust it against output liabilities, but no credit is available for services covered by Clauses A, B, BA, C.