About service tax credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 February 2013 A company's all employee are working at home by internet (BSNL Broadband) and the company bear all the internet expense which is used by the employee. All teh internet invoices are on the name of different employee. the company's service amount is exceed to Rs. 10,00,000/- in 10 month (up to January). and the company charge the service tax on next bill from the february. Can a company avail service tax credit on BSNL Broadband charges bill which on The name of employee?

CA Priti Surana

CA Priti Surana (Expert)
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11 February 2013 As the bills are coming on the name of employees, and the company is paying their bills, it will come under staff benefits, and would attract service tax. Now the said tax is being collected by the company from employees, so in my view, it is payable tax, not eligible for credit.