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This query is : Resolved

CA. VIKAS GUPTA (Querist)

21 December 2012 Hi Experts,
One of my clients is engaged in business of builders.
Its sales managers travel at different places and stay in hotels. All the tours are for official purposes. Hotels give the bills in the name of the person and the company re-imburse the expenses to the persons. Whether the company can claim service tax input on the bills issued by the hotels

thnx

Kaushik Vinod

Kaushik Vinod (Expert)

23 December 2012 Hi Vikas,

The Rule 2(l) of CCR,2004 the specific part of the rule says input service" means any service,—
(i) used by a provider of output service for providing an output service; or

But excludes :-
such as those provided in relation to travel benefits extended to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee:

The Input in your case can be availed by covering it in the specific part of the definition.

Thanks

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