during an audit of an infrastructure company i found that the accountants are availing input credit of service tax paid on telephone bills and on the fooding bills of restaurant.
is it correct? can they avail credit on such expenses?
Ruchit Berlia (Student) (41 Points)
12 February 2010during an audit of an infrastructure company i found that the accountants are availing input credit of service tax paid on telephone bills and on the fooding bills of restaurant.
is it correct? can they avail credit on such expenses?
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 12 February 2010
Ruchit Berlia
(Student)
(41 Points)
Replied 12 February 2010
thanks ayush for replying me. but plz can u let me know if their is any circular or any notification for such. actually if i argue with my client than i have to do that with proper base.
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 12 February 2010
Arun Kumar Singh
(GST Advocate)
(15203 Points)
Replied 15 February 2010
You can take cenvat credit on service tax paid on telephone bills and rastaurant bills.
CA Pranjal Joshi
(CA)
(331 Points)
Replied 15 February 2010
Hi,
There is no need for having separate circular. Once the eligibility of "Input", "Input service" and "Capital Goods" is satisfied under Cenvat Credit Rules, 2004 one can take credit.
Here, one may note that the entire amount of credit of service tax paid on telephone may not be available if manufacturer is engaged in manuafcture of dutiable as well as taxable goods (Refer Rule 6 fo Cenvat Credit Rules)
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
CAclubindia
