Cenvat Credit applicability on purchase of residential property

Share
Share This Thread
  1. Ankit Niraula

    Ankit Niraula New Member

    I am purchasing a residential property and using it for renting purpose. Will I get the credit of the service tax I paid when I purchased the property???

    Thanks in advance.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Please note that Service Tax is not levied on Rent received from Renting of Residential property used for Residential purpose.
     
  3. Ankit Niraula

    Ankit Niraula New Member

    If I rent the property for some offices, then service tax is applicable isin't it? Can I take the credit of 3.09% in that case?
     
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Budget 2014 has introduced an amendment which states that Cenvat Credit should be taken within 6 months.

    As you are buying an under construction building on which service tax would be levied, I'm assuming that it will take atleast 6 months for the property to get constructed and then let out on Rent.

    Therefore, I dont think that in the case mentioned above, it would be possible for you to claim Cenvat Credit of Service Tax paid on purchase of under-construction building
     
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
Availability of Cenvat Credit GST Apr 26, 2017
cenvat credit GST Jan 6, 2017
Cenvat Credit GST Apr 20, 2016
Can CENVAT credit be taken on construction of residential properties GST Mar 3, 2016
SERVICE TAX CENVAT CREDIT GST Jan 13, 2016