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ST on catering and hospitality service!!

CA VINAY BANSAL (In job with KPMG) (289 Points)

03 December 2010

Hello All,

Can we take the input service tax credit for the payment made in respect of bill raised for serving food and conference hall of a five star hotel...... the bill is containing service tax..... we r providing financial services.........................

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2 Replies

(Guest)

i think

if u have take the benefit of prescribe abatement under act

then u can not get input tax credit ...

otherwise u can take the benefit of input tax credit

Ganesh (CA) (111 Points)
Replied 06 December 2010

Dear Vinay,

The input service tax credit will be allowed only if the expenditure is a necessity for the purpose of furtherance of the business. If the expenditure is for say, employee get together, annual party etc.. it will be disallowed by the department.

Thanks,

Ganesh