Input Credit on Canteen
This query is : Resolved
03 October 2008
Company entered in to a contract with a caterer for supply of food in the factory.
All kichen equipment, Gas, electricity and labour for cleaning are provided by the company.
Company recovers food cost from the employees throgh salary deduction.
Canteen contractor gives bill, charging service tax on entire bill, to the company at the month end which is paid by the company.
whether we can take the service tax credit so charged by the canteen contractor?
If the company provides canteen at free of cost to its employees, then r v eligible for credit.
All kichen equipment, Gas, electricity and labour for cleaning are provided by the company.
Company recovers food cost from the employees throgh salary deduction.
Canteen contractor gives bill, charging service tax on entire bill, to the company at the month end which is paid by the company.
whether we can take the service tax credit so charged by the canteen contractor?
If the company provides canteen at free of cost to its employees, then r v eligible for credit.
03 October 2008
Under Cenavat credit rules 2004, Input credit can be taken only if it used for providing output service or used in manufacturing of final product.
Situation is not such in your case.So you can not take credit of that.
For Staff welfare ( co exp )only you can take credit as per various case laws.But it is disputed issue.
Situation is not such in your case.So you can not take credit of that.
For Staff welfare ( co exp )only you can take credit as per various case laws.But it is disputed issue.
10 October 2008
The definition of input service is wide enough. You will be eligible only if you provide canteen facility free of cost to your employees.
11 October 2008
It has been held that credit will be available, even if subsidised food are provided. The following case may be referred to : CESTAT, WZB, MUMBAI
CCE
v.
GTC Industries Ltd.
APPEAL NO. E/1279/07-
Mum & E/CO-239/07-Mum
CCE
v.
GTC Industries Ltd.
APPEAL NO. E/1279/07-
Mum & E/CO-239/07-Mum
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
