CENVAT Credit of Service tax paid on canteen services and on bus hire charges, Service Tax

[Ashok Jain]

Sir, In case of a manufacturing unit where all products are excisable.Can We claim CENVAT Credit of Service tax paid on canteen services and on bus hire charges. Both these facilities are for the welfare of employees and service tax is paid to outside contractors.

Posts / Replies

[Surender Gupta]

Any input services which is not related to manufacturing activities, may be eligible for Cenvat Credit if it falls in the inclusive part of the definition of Input services (See Rule 2(l). Therefore, if these activities are related to business, cenvat credit is available.

[Madhukar N Hiregange]

It should be possible. There is already a decision on cvanteen being available.

[Ajay Garg]

'Inpur service' is defined as 'any service' as in rule 2(l) of Cenvat Credit Rule-2004 an any service used to manufacturer or service provider, directly or indirectly, in or in relation to manufature of final products. Hnec we can calim CENVAT Credit of Service tax paid on canteen services and on bus hire charges. Both these facilities are for the welfare of employees and service tax is paid to outside contractors. Canteen is provided by the company and charges incurred for running the same are born by the company. Hence the same is indirectly related to activities which are in relation to manufaturer of final products.