Cenavt credit - guest house, Service Tax

[Pukhraj Garg]

We are a Ltd Co. having trn over of 200 Crore engaged in maufacturing of non organic chemicals. We are located in a remote area where hotels of desired standards are not available, hence we have to maintain our own guest house for our business partners, like supplier, engineere contractors and also for asseising authorities during ther audits. I need clearance whether The service tax paid on guest house is cenvatable ??

Posts / Replies

[sudhir V S]

Dear Mr. Garg, Is your question is whether service used in guest house is cenvatable? if so the definition of the input service under Rule 2(l) of CCR 2004 is given in the two limbs I. any service used in or in relation to manufacture of final product. II. Activities related to business and gives a illustrative list. Hence in your case the service received can be considered as activity relating to business and therefore should be allowed as credit.