Input credit of Construction service

[MUNIRAJ SRINIVASAN]

my client has Collecting commercial complex rent and service tax from customers he can avail service tax input credit for renovation of same complex and contruction service tax input credit which has been paid earlier

[YAGAY andSUN]

No, such adjustment is not allowed under service tax laws and provisions.

AI Summary

Service tax input credit not available for renovation or construction of rented commercial complexes under applicable rules. Availing service tax input credit for renovation and construction of a commercial complex whose rent and service tax are collected is not permitted; the query whether earlier-paid service tax on renovation or construction services can be adjusted as input credit against tax collected on rent is answered in the negative under applicable service tax provisions.