Service tax credit on mobile phones

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..... Service tax credit on mobile phones
Query (Issue) Started By: - vinay Vohra Dated:- 9-2-2007 Last Reply Date:- 17-2-2007 Service Tax
Got 2 Replies
Service Tax
Our client has taken mobile .....

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..... phone connections for its employees under corporate connection policy. The bills are in the name of the employee. Our client is bearing mobile phone charges. Can our client claim Cenvat Credit in resp .....

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..... ect of service tax paid on mobile phone charges? Reply By Surender Gupta: The Reply: As per the provisions of rule 2(l) of the Cenvat Credit Rules, 2004, any input service which is used to provide o .....

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..... utput service is eligible for Cenvat Credit. Therefore, the heavy onus is on the company to prove that the mobile phone provided to its employees are for the purpose of its business and used for provi .....

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..... ding output service. Reply By Madhukar N Hiregange: The Reply: This is a common practice and my view is that credit may not be deniable of the same is used for pofficial purposes. It maybe wise to av .....

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..... ail the credit after a deduction for personal use ( say 10-30%) depending on the personal use on approxiate basis.
Discussion Forum - Knowledge Sharing .....

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