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Input service tax credit on mobile bill charges

Sonal (CA Final) (382 Points)

16 December 2009

Company is involved in manufacturing activities. whether input service tax credit is available on mobile bill charges paid.

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9 Replies

Vivek Jarial (Student) (272 Points)
Replied 16 December 2009

you are only utilise the service tax input credit if the bill is issued in the name of the company..........

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AJAY AGARWAL (Articleship) (102 Points)
Replied 16 December 2009

yes but only if the mobile bill is issued in the name of the company

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Arun kumar singh (Audit) (22 Points)
Replied 17 December 2009

what is the base, any sec or case law ?

Robin Kumar Gupta (profession) (179 Points)
Replied 17 December 2009

The CENVAT credit may be utilized for payment of –

(a) any duty of excise on any final product; or

(b) an amount equal to CENVAT credit taken on inputs if such inputs are removed as such or after being partially processed; or

(c) an amount equal to the CENVAT credit taken on capital goods if such capital goods are removed as such; or

(d) an amount under sub rule (2) of rule 16 of Central Excise Rules, 2002; or

(e) service tax on any output service:

Provided that while paying duty of excise or service tax, as the case may be, the CENVAT credit shall be utilized only to the extent such credit is available on the last day of the month or quarter,as the case may be, for payment of duty or tax relating to that month or the quarter

Hence the company can avail service tax credit on service tax paid on mobile bills. (Sunject to the condition that mobile bill is issued by telecom company in the name of company)

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Sonal (CA Final) (382 Points)
Replied 17 December 2009

Thanks a lot friends!!!!!!

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VIGNESH (Manager Finance &Accounts) (327 Points)
Replied 17 December 2009

yes, very well you can avail a service tax input credit if the company is not in any SEZ towards service tax exemption and the bill is in the name of the company.

NARENDER PAWAR (CA final Student) (337 Points)
Replied 19 December 2009

if the invoice in the name of company than cenvat credit of service tax taken

Bharat Khurana (Student) (153 Points)
Replied 21 December 2009

cenvat credit is available on all services relating to business activity so telephone services are eligible for cenvat credit but if const. co. has several sites then invoice should be in the name of relevant site. if invoice is in the name of head office then assessee will be required to get himself registered as input service distributor

Anish M.S (Internal Auditor) (116 Points)
Replied 22 March 2011

Please give your valuable suggestions ------------------------------------- As per the compnay policy,compnay will pay the mobile charges for the SIM cards used by the employees since the connections are in the name of the company. And if the amount exceeds Rs.800, the excess amount will be recovered from his salary. In the instant case whether the service tax recovered from employee related to the amount exceeding Rs. 800 can be taken as credit or not ? For Example- ----------- Mobile charges - Rs800 Service Tax Rs80 Cess Rs2.4 Total company has to pay Rs.883 In the above case Rs 83 will be recovered from employees salary. Wehether the compnay can take this amount as service tax input credit ?