ish kumar sharma (Sr. Manager Accounts & Finance) (301 Points)
10 August 2015dear team
a company is paying the telephone bills of one of director in cash, now my query is whether company can claim it in its profit and loss account and if yes in which head?
can company take input service tax benifit on the same?
CMA Poornima Madhava
(CMA)
(13097 Points)
Replied 10 August 2015
If such expenditure is for business purpose, then it can be accounted and also input service credit can be taken i think. I find no exclusion of telephone exps from input service definition, as defined u/r 2(l) of CCR.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 11 August 2015
before taking credit be ensure that the phone is used as input service for providing taxable output service. normally telephones installed on working sites only come under this criteria
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