Cenvat Credit for the Tax paid for Telephone Bills

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Anurag (Querist)
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19 April 2009 I'm a Tour Operator and use the facility of Abatement on all the services we provide. Hence Cenvat Credit is not applicable on the service I provide.

Here my question is that we pay bills (e.g. Telephone Bills) in which we also pay Service Tax & Cess.

As these Telephones are installed in office and are used for office purpose, CAN WE TAKE THE CENVAT CREDIT OF THE SERVICE TAX/ CESS PAID AS A PART OF THE TELEPHONE BILLS???

Kindly Advise.

Regards,

Anurag

Dayal

Dayal (Expert)
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19 April 2009 Once the benefit of abatment is enjoyed, the cenvat credit rules forbit availment of input credit on any of the service availed for providing output taxable services.

Therefore you cannot avail the input cenvat credit on telepone lines