Service tax on dongle charges.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2015 I AM WORKIN IN NBFC. IN OUR COMPANY DONGLE IS GIVEN TO EMPLOYEE TO WORK FROM HOME .
AT THE END OF MONTH WE RECIEVE DONGLE CHARGES BILL.ON WHICH SERVICE TAX IS INCLUDED. I WANT TO KNOW WHETHERWE CAN BE AVAILED ONS SERVICE TAX AS INPUT CREDIT OF SUCH CHARGES

Mohit Singla

Mohit Singla (Expert)
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03 January 2015 As per the definition of "Input Service" means any service used by the provided of output service for providing an output service.
and includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation upto the place of removal;

The only exception in this case for employee if the use of benefits provided to employees are primarily for the personal use, then cenvat credit can not be taken.
Otherwise you are eligible for cenvat credit for the dongal charges.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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03 January 2015 If it is used for official work done from home cenvat credit can be claimed.

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Mohit Singla

Mohit Singla (Expert)
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03 January 2015 YES YOU CAN, because in today's industry practice providing dongal facility is quite common and even its also not possible to justify whether its used for official purpose or personal purpose. So their is no issue in taking cenvat credit.