TaxTMI 
TaxTMI 
TaxTMI 
CBEC clarifies the issue of Cenvat Credit for the purpose of payment of Service on Renting of Immovable Property
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....BEC clarifies the issue of Cenvat Credit for the purpose of payment of Service on Renting of Immovable Property <br>News and Press Release<br>Dated:- 5-1-2008<br><BR>CBEC has issued a master circular ....
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....no. Circular No. 96/7/2007-ST dated the 23rd August, 2007 to clarify various issues. Now this circular has been amended vide Circular No. 98/1/2008-ST dated 4/1/2008 to clarify more issues. On of su....
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....ch issue was as under: Whether cenvat credit of commercial or industrial construction service or works contract service used for construction of an immovable property, could be treated as input servi....
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....ce for the output service namely renting of immovable property service under the CENVAT Credit Rules, 2004. Now the CBEC clarified the issue as under: Right to use immovable property is leviable to ....
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....service tax under renting of immovable property service. Commercial or industrial construction service or works contract service is an input service for the output namely immovable property. Immovabl....
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....e property is neither subjected to central excise duty nor to service tax. Input credit of service tax can be taken only if the output is a 'service' liable to service tax or a 'goods' liable to exci....
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....se duty. Since immovable property is neither 'service' or 'goods' as referred to above, input credit cannot be taken.<BR> News - Press release - PIB....