Is service tax input can be claimed

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This query is : Resolved

Don Bosco (Querist)

16 August 2010 Dear Sirs / madams
Is the service tax claim from a airtel bill which is paid in the name of employer but it is used by our (business development manager). Please clarify whether we can take service tax on that bill or not.
Thanks in advance for your support.
Don Bosco

CA Sanat Pyne

CA Sanat Pyne (Expert)

16 August 2010 A doubt has been raised regarding admissibility of CENVAT credit on service tax paid in respect of mobile phones. In the Service Tax Credit Rules, 2002, it was prescribed that credit of service tax was admissible only on telephone connection installed in the business premises. A clarification to this effect was also issued vide circular No. 59/8/2003-ST, dated 20.6.2003, in the context of the Service Tax Credit Rules, 2002. However, in the CENVAT Credit Rules, 2004 no such condition has been prescribed. Therefore, w.e.f. 10.9.2004, credit of service tax paid in respect of mobile telephone service is admissible, provided the mobile phone is used for providing output service or used in or in relation to manufacture of finished goods.

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