whether service tax paid on telephone bill can be treated as input for a service provider?
Service tax paid on telephone bill can be treated input ?
vijay (article) (122 Points)
14 February 2014
14 Replies
CA Piyush Jhawar
(Chartered Accountant)
(545 Points)
Replied 14 February 2014
@ Vijay
Yes vijay any service tax paid on servcices used for rendering output services by a service provider will be elligible for CENVAT credit under CENVAT CREDIT RULES 2004.
There are specific exclusions from the definition of Input Service under rule 2(l).Service Tax paid on telephone bills are not under the ambit of the exclusions!
karan jit singh
(Consultant)
(1299 Points)
Replied 14 February 2014
| Originally posted by : vijay | ||
 |
whether service tax paid on telephone bill can be treated as input for a service provider? |  |
Yes , refer rule 2(l) of CCR.
N J Shashikanth
(ca)
(25 Points)
Replied 14 February 2014
I too had the same doubt Vijay
thanks @ piyush
CA_UDIT
(Chartered Accountant)
(206 Points)
Replied 14 February 2014
ITC can fully be availed on telephone service provided that service tax is shown seperately and the name of the assessee is duly mentioned on the bill.
SOURABH
(NIL)
(21 Points)
Replied 15 February 2014
It can only be claimed if the bill is in name of assessee & there is clear bifurcation of service tax amount & bill amount.
SONI BHAVIK
(In Practice)
(49 Points)
Replied 15 February 2014
Yes, but it must be for Business purpose... Even Mobile number taken on the name of Employees are eligible for Cenvat Credit... But We cant prove that every phone calls made are only for Business purpose... And therefore, in Service Tax Audit, Department asked to reverse such credit... Hence, it is advisable not to take Input servica tax credit on telephone bills to avoid such litigation...
Khurram Sajjad
(Account Officer)
(26 Points)
Replied 15 February 2014
But whether i can avail full input credit without following Rule 6 of CENVAT credit rules,as i am providing both taxable and non-taxable services.
Khurram
Rahul Jain
(service)
(58 Points)
Replied 15 February 2014
SIR,
ONLY LAND LINE INPUT CREDIT WILL BR TAKEN
BECAUSE MOBILE BILL USE FOR BUSINESS PURPUSE AS WELL AS PERSONAL PERPOSE SO DEPATMENT NOT GIVEN CREDIT ON MOBILE PHONE SER. TAX
NAVEEN KUMAR
(Student CA IPC / IPCC)
(23 Points)
Replied 18 February 2014
YOU CAN TAKE CREDIT IF YOU ARE PROVIDING CORRESPONDING OUTPUT SERVICES OF IT
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