14 January 2012
The co. is reimbursing the bills of mobile phones and landline phones of the employees. and the connection of mobile phone and landline is in the name of the employee. The co. is taking input credit of the amount of service tax paid on the bills of phones. Can the co. take the input credit of that amount of service tax?
16 January 2012
Strictly speaking, credit can be availed only on invoices of the service provider which bears the name of the service provider. Hence, credit may not be available on invoices which bear the name of the employees.