Cenvat credit of telephone services

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Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2013 Can we take CENVAT credit of telephone bills of landline..bill in the name of Company

Ashwani Narnoli

Ashwani Narnoli (Expert)
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17 July 2013 Yes, of course it is allowed provoded the other conditions for availing credit is followed

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Querist : Anonymous

Querist : Anonymous (Querist)

17 July 2013 thanks...

for other conditions cn u specify section or rule to refer..

wht of mobile bills..in case of 1. bill in name of Co 2. bill in the name of employee..

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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17 July 2013 For claiming credit bills has to be in the name of company only else it will not be allowed.

if you are manufacturer and want to set off against excise then refer rules relating to cenvat credit rules,2004.

similar rules are there for service tax credit with variation.

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Ganeshbabu K

Ganeshbabu K (Expert)
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17 July 2013 1)The use of telephones at residences of executives for official purposes should be considered as ‘activity relating to business’.

2)Hence, the service tax credit should be eligible.

3) Even service tax paid on mobile phones will be eligible, if it is in relation to business.

4)Landline phones installed in residences of officers and directors of company is for business purpose and Cenvat credit is eligible –

Keltech Energies v. CCE (2008) 14 STT 419 (CESTAT SMB) *

ITC Ltd. v. CCE (2009) 20 STT 110 = 42 VST 383 (CESTAT SMB)

Hope i covered to your requirements

Thanks & regards
Ganesh babu k

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Ganeshbabu K

Ganeshbabu K (Expert)
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17 July 2013 Mobile phones eligible for Cenvat Credit :-

1) Earlier Service Tax Rules required ‘installation’ of telephones in the business premises.

2)Hence, CBE&C had clarified vide circular No. 59/8/2003-ST dated 20-6-2003 that Cenvat credit will not be available in case of mobile phones.

3)Now there is no such requirement. Hence, service tax paid on mobile phones will be eligible for Cenvat credit w.e.f. 10-9-2004, so long as these are used for ‘activity relating to business’ –

view confirmed in
Indian Rayon v. CCE 2007 (6) STT 328 = 4 STR 79 (CESTAT SMB) –

followed in Nice Telecommunication v. CCE (2007) 8 STT 159 (CESTAT) and

Thanks & regards
Ganesh babu k

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Ganeshbabu K

Ganeshbabu K (Expert)
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17 July 2013 1)Mobile phones in name of employees eligible for Cenvat.

2)In Wiptech Peripherals v. CCE (2009) 19 STT 306 (CESTAT SMB),

it was held that Cenvat credit on mobile phones will be eligible even if the cell phones are in name of employees, if the phone is used for business of assessee.

3)Legally, the telephone need not be in name of manufacturer/service receiver. What is essential is that the input service should be utilised for purpose of business of person utilising Cenvat credit. It is advisable to take endorsement from employee on the invoice.

Thanks & regards
Ganesh babu l

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