deepika

See Indirect Taxes Amendment comes into immediate effect so when the rate is 10.30% effective 24.2.2009 then how for your exams it can be 12.36%.i think we cannot proceed like direct taxes as for our exams

THE MOBILE PHONE SHOULD BE IN THE NAME OF PROPRITER   /  PARTNER  /  DIRECTOR  /  COMPANY AS THE CASE MAY BE. THE MOBILE BILLS MUST BE PAID BY DOCUMENTARY EVICENCE (postpaid). DEDUCT YOUR SERVICE TAX LIABILITY AND PAY MONEY BY GAR-7. ON RETURN MENTION AS CENVAT CREDIT.

Hi all,

Please dont judge CENVAT Credit availability on only one parameter of nexus. One-to-one correlation is not totally done away with. If we read Input Service definition, clearly shown that, services which is provided in relation to output service meaning by at least that input service should have been received to provide that taxable service against which we want to avail and utilise CENVAT Credit.

Just because one-t-one correlation does not always hold good while availing benefit of CENVAT Credit it does not mean that even if there is no nexus one can avail it.

CENVAT Credit on personal expenditure should always be disallowed. Thats a different case how you decide the quantum of personal expenditure from total.

Moreover, to avail credit the invoice should be in the name of assessee company and under the registered address which is shown in registration. If this criteria is not fulfilled, even CENVAT on busienss expenditure is disallowed.

Thanks Mr Gautam Joshi for giving your valuable views on the same

Is there any notification supporting this? If yes, pl. share with us.

Cenvat Credit is available both on land line/mobile, if it is used for providing output service/manufacturing.

Under Cenvat Credit Rules, ownership of goods/services are irrelevant. Thus it does not matter as to in whose name the phone is. As long as it is used for business purposes, credit is available.A business pays for it only when it is solely used for business. It is irrelevant if some employee uses the phone for personal purposes too without knowledge of the company.

One more question can come. Say a company gives phone to its employee for personal purposes. In that case also credit is available as it is part of the compensation to employee, and hiring employees are required directly to provide output service. A company cannnot provide output services without hiring employees, and if giving such benefits is necessary to hire the employee, there is no reason why credit should be disallowed for that.

I can remeber old modvat rules. When such rules come, department contended that modvat is not available on accessories, catalyst and whole lot of other things. It lost all those cases. It will loose these too, as and when such issues will be raised in judiciary. Assessees who will take credit and contest such demand will benefit ultimately. 

I HOLD A PERSONAL PHONE IN MY NAME. I GIVE CONSULTENCY TO "X" COMPANY.

TELEPHONE AUTHORITY BILLS TO ME

CAN THE "X" COMPANY CLAIM THE CENVAT CREDIT FOR MY TELEPHONE 

I THINK IT IS NOT POSSIBLE

WHAT IS YOUR OPENION

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Sir is there any notification supporting this statement?

For the purpose of plan, does prepaid or postpaid connection matters?

Hi Ekalabya,

I dont think so that we can avail such Credit by taking the phone in our name and giving consultancy to some other firm.

This is like a clear arrnagement to avail benefit which is otherwise not available in law.

Ekalabya is providing a service to X. This telephone is an input service for the output consultancy service. Thus, if Eklabya is paying ST, he can take credit of this ST paid on telephone service. However, the company X cannot take credit of this ST directly, as it is not used by company X.

How about treating Eklabya as job worker of company X? Is it possible to take credit in that situation?

Dear Deepika Rajgopalan.

PLEASE VISIT THE WEB PAGE

https://www.dateyvs.com/cenex07.htm

YOU WILL FIND ALL THE DETAILS OF CENVAT CREDIT

.

Sir,  We are the manufacturers and Exporters of COTTON POWERLOOM MADE-UPS from

KARUR (TAMILNADU) We have enrolled our firm in service tax and trying our level best for

refund of  Service Tax paid to Overseas Agent commission, Service tax on courier bills (overseas) Service TAx on Shipping agent Bill and so many items. WE are not able to satisfy

the Central Excise department and they are regulary returing the papers with some querry.

Hence we wish to know what are the required documents shall b given to Department and Is there any  circular for submission  list?

PLEASE CLARIFY AND IT WILL BE BENEFICIAL FOR ENTIRE KARUR EXPORTERS FOR

REFUND OF SERVICE TAX PAID IN VARIOUS CATEGORIES.

 To prove a nexus of the expenditure is always on assessee. If you can prove it with the authority you can always avail credit 90%/100% whatever pro-rata.

This is something which should be decided by putting our shoes in authorities side. Assessee should divide the whole expenditure itself in personal as well as business and than credit will automatically reduce by personal extent.

_____________________

In my view it can certainly do so. As advised it may estinate the personal use and avail the credit for say 80% or 80% of the ST paid.

A very important judgment has come in the last issue of STR- whatever value is included in the value of goods/output services, credit is available.

Thus even if the phone is used at home of some employee, but the company is paying the bill- the value of the services is included in the value of output services and hence credit is available.