Cenvat credit

This query is : Resolved

Yogesh (Querist)
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05 October 2016 Respected Seniors,

Kindly help me to clear the doubt whether CENVAT Credit can be availed on postpaid Mobile Phone Bills as well on the Taxi Hiring Charges. Mobile Bill is in the name of the Prop.

Clarification with the supporting would be appreciable.

PLS TAKE IT ON PRIORITY

With Thanks & Regards,

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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05 October 2016 As per Rule 2(1) of Cenvat Credit Rules, defines "Input Service” means any service,-

(i) used by a provider of output service for providing an output service; or

(ii) used by the manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products
and clearance of final products, up to the place of removal, and includes services used in relation to modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation up to the place of removal

but excludes,-

(A) service portion in the execution of a works contract and construction services including service listed under clause (b) of section 66E of the Finance Act (hereinafter referred as specified services) in so far as they are used for
(a) construction or execution of works contract of a building or a civil structure or a part thereof; or
(b) laying of foundation or making of structures for support of capital goods, except for the provision of one or more of the specified services; or

(B) Services provided by way of renting of a motor vehicle, in so far as they relate to a motor vehicle which is not a capital goods; or

(BA) Service of general insurance business, servicing, repair and maintenance , in so far as they relate to a motor vehicle which is not a capital goods, except when used by
(a) a manufacturer of a motor vehicle in respect of a motor vehicle manufactured by such person ;or
(b) an insurance company in respect of a motor vehicle insured or reinsured by such person; or

(C) such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and 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;

In Your Case

1. Service Tax Paid on Mobile bills will be eligible for Cenvat Credit (There are Many Case Laws for the same)
2. For Taxi Hiring services Cenvat credit is not available as this service is specifically excluded from input service.
Thanks.

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Yogesh

Yogesh (Querist)
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10 October 2016 Respected Sir,

Thank You Very Much,

Still I'd like to clear my existing doubt as the no is used for both Official as well as a bit for Personal use, whether we should go for the Credit.

I would be very thankful to you if you can provide some PDFs of related Case Laws.

Thanks & Regards,

CA SAGAR M. AHUJA

CA SAGAR M. AHUJA (Expert)
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10 October 2016 Please read the article in below link you can find many case laws
https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=469
Thanks.

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