12 May 2010
IN case of an organisation which is a sole proprietorship concern and is registered as a service provider, with valid service tax registration number, can the amount of tax charged by mobile phone companies on the bill be taken as input service tax credit.?
In ‘Commissioner of Central Excise, Bangalore – I V. Conzerv Systems Private Limited’ – 2009 (13) STR 638 (Tri. Bang) the tribunal held that the mobile phones standing in the name of the company and used by employees in relation to work only and incidentally can be used for personal work but that it by itself no ground to deny credit there on in view CBEC Circular No. 97/8/2007-ST, dated 23.08.2007.