Cenvat Credit in respect of Input services and vat, Service Tax

[B]

'A' is a proprietorship concern doing data-processing work. Query is with respect to whether CENVAT credit can be claimed on the following : a) Telephone expenses for landlines used in office and connection in personal name? b) Cellular phone in name of proprietor? c) VAT paid on expenses like stationery, printing, computer repairs, software purchased etc? Many thanks for your assistance !!

Posts / Replies

[Surender Gupta]

For the purpose of service tax, you can avail Cenvat Credit against service tax paid on Telephone Bills and Cellula phone. However, where the phone is in the name of proprietor, you can calim the credit but if question is raised, you have to prove and satisfy the department that the same is being used for the purpose of business. Currently there is no facility for availing the credit against VAT (sales tax)

[Madhukar N Hiregange]

All servcies used for providing the taxable servcies are eligible. Telephone and cell phone would be eligible. VAT not allowed as not specified.