Can service tax availed on mobile phones

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Dileep (Querist)
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06 July 2011 Sir,
I had a doubt.pls clarify.

Whether Service Tax Input can be availed on mobile phones or not. on land lines we can avail. But on mobile phones can we avail?

If not can give circular or notification reference regarding this non availment.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2011
yes. At is obvious that employees would be using for personal use, but so long in the name of the company, credit is not deniable which is eqaully clarified by the master circular on service tax issued by the department.

IN THE CEST A T, SOUTH ZONAL BENCH, CHENNAI

Shri P.G. Chacko, Member (J)

COMMISSIONER OF C. EX. (L TV), CHENNAI

Versus

BRAKES INDIA LTD.

Final Order No. 1128/2008 and stay Order No. 897/2008, dated 3-10-2008 in Application No. E/SO/261/2008 in Appeal No. E/306/2008

Shri N.J. Kumaresh, SDR, for the Appellant.

Shri M. Kannan, Advocate, for the Respondent.

In the said citation it is stated that the telephone service received on the mobile phones of the respondents, which were operated by their staff in connection with the business of the company, was 'input service' and accordingly the service tax paid thereon was available as CENVAT credit to the respondents.

Therefore you can take the entire credit where the connections are in the name of the company

Regarding personal connections, though reimbursed by the company will not stand to be eligible

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