Service tax issue

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

01 February 2015 Dear expert.
my query is related to service tax input.

(1)can i take input of service tax for paying telephone bill.
(2)i got repaired my car by by car dealer. who has also charged service tax for my car service. can i get input at both the cases.

CA R SEETHARAMAN online

CA R SEETHARAMAN online

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01 February 2015 You shall be able to claim Cenvat credit on telephone phone bills and also service tax paid on repair and maintenance of vehicles used solely for the purpose of official duty shall also be eligible for Cenvat credit of service tax.

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2015 Dear Seethareman sir,
please clarify my doubt

in respect of work contract of repairing electrical goods, the contractee is charging 50% ST in the bill under reverse charges,
despite contractee has turnover below the exemption limit of ST, in this case can contractee take ST input on telephone

CA R SEETHARAMAN online

CA R SEETHARAMAN online

(Expert)
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23 March 2015 If it is a out put tax paid then it can be claimed.

CA Raman Singla

CA Raman Singla (Expert)
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23 March 2015 In continuation with seetharaman ji, as per my view. The cenvat credit on repair of motor vehicle can not be claimed as it is specifically excluded from the definition of input services under rule 2(l) of cenvat credit rules 2004.

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015 DEAR SEETHARAMAN SIR
NO DOUBT THAT WE ARE PAYING OUT PUT ST BUT WE ARE COLLECTING ONLY 50% ST FROM THE RECIPIENT UNDER RCM DESPITE HAVING TURN OVER BELOW 10 LAKHS BECAUSE REPAIR & MAINTENANCE WORK IS TRADE NAME FOR OHTER.
IN THIS CONDITION CAN WE CLAIM ST CENVAT PAID ON TELEPHONE BILL.

PLEASE CLARIFY..

CA R SEETHARAMAN online

CA R SEETHARAMAN online

(Expert)
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24 March 2015 I agree with Mr. Raman on the views of repair of motor vehicles.
I am confused about your query.

Cenvat credit can't be claimed on 50% service tax paid under RCM.
It can be claimed against output tax paid for which the input service is utilized.

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2015 DEAR SIR
IS THERE NO ANY DIFFERENCE BETWEEN THE REPAIR OF MOTOR VEHICLES AND REPAIR ELECTRICAL GOODS LIKE A/C FRIDGE RO ETC.

WILL THESE BOTH SERVICE BE TREATED SIMILARLY.