service tax set off

madhavvan (Querist) 05 March 2008 This query is : Resolved
for property taken on lease we have to pay service tax whether we can take credit of this service tax paid against any taxable input service rendered by us

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Rajesh Kumar (Expert) 07 March 2008
Yes. The service tax paid on input services(in this case ren on immovable property) is available as credit on your output services, provided the input service is being used in or in relation to, directly or indirectly, providing output services.
For example say you are tunning a beauty parlour and has taken a property on rent. The service tax paid on rent can be credited and used while paying taxes on services of beauty parlour.

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