CENVAT Credit for Input Service of Canteen in Factory
This query is : Resolved
swatikrishnan
(Querist)
23 November 2007
Dear friends,
Please let me know whether we can take CENVAT credit of service tax paid on the bill raised by caterers of Factory canteen.
Does such service fall under Input service
thanks
Regards
Swati
Dear friends,
Please let me know whether we can take CENVAT credit of service tax paid on the bill raised by caterers of Factory canteen.
Does such service fall under Input service
thanks
Regards
Swati
23 November 2007
Yes you can avail the cenvat credit of service tax paid.
It squarely falls under the vide defination of input services.
However credit to the extent of the amount recovered from the employees towards food supplied by canteen contractor will not be eligible.( employee contribution either through deduction or coupons provided by the company as deducted from salary)
That means you need to take proportionate credit.
Going ahead there is no provision for taking proportionate credit, but this is the best solution available.
The above clarification is NOT provided as a legal opinion, but my views after a careful perusal of the provisions of the act
https://www.caclubindia.com/homepage/DM%20Associate/
It squarely falls under the vide defination of input services.
However credit to the extent of the amount recovered from the employees towards food supplied by canteen contractor will not be eligible.( employee contribution either through deduction or coupons provided by the company as deducted from salary)
That means you need to take proportionate credit.
Going ahead there is no provision for taking proportionate credit, but this is the best solution available.
The above clarification is NOT provided as a legal opinion, but my views after a careful perusal of the provisions of the act
https://www.caclubindia.com/homepage/DM%20Associate/
Suresh Agrawal
(Expert)
23 November 2007
You can avail full credit of the service tax paid. There is no need for proportionate credit.
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