whether service tax paid on mobile tower rent or excise duty paid on mobile tower equipment(capital goods)
is eligible for cenvat credit to be taken by telecom company.
ASHUTOSH DAS (ACCOUNTS OFFICER) (35 Points)
07 January 2015whether service tax paid on mobile tower rent or excise duty paid on mobile tower equipment(capital goods)
is eligible for cenvat credit to be taken by telecom company.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 08 January 2015
yes, cenvat credit can be avail but wait for experts to get reply
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 03 March 2015
Hello,
Rent paid to install mobile towers, which are used for boosting signals to provide telecom services, amount to 'input service' for telecom companies; hence, service tax paid on said rent is eligible for credit
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 03 March 2015
But excise duty paid on mobille tower will not be eligible for credit.
See case law of
Bharti Airtel Ltd. Vs. The Commissioner of Central Excise, Pune III [2014-TIOL-1452-HC-MUM-ST -