Credit taken on catering

This query is : Resolved 

10 November 2011 Dear All,

can we take service tax credit on catering service(canteen) if we are a manufacturing company.

Thanx
Anu Verma
Jaquar

13 November 2011 As per amendment by Finance Act 2011 alongwith NN 03 dated 01.03.11 input service does not includes, inter alia, services:

such as those provided in relation to outdoor catering etc. when such services are used primarily for personal use or consumption of any employee.

Thus in your case you have to chech that whether catering services has been used for personal use of employee or not. If it is for personal use of employee then it will not be input service and accodingly CENVAT credit shall not be allowed.

14 November 2011 thanx a lot


14 November 2011 If you are really satisfied with my reply then say thanks by clicking on "THANK USER"



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