Queries regarding tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 can i know ( does canteen facilities and recreational facilities comes under input services in manufacturing company as it help the company employees to work properly. if the employees goes outside the company to have lunch the production level will goes down. so if the company provides all these facilities within company to increase productivity. so can it comes under input service)

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

17 June 2013 Yes..it is eligible input service

1)Canteen, subsidized foods, personal insurance eligible – In Millipore India v. CCE (2009) 22 STT 536 = 236 ELT 145 (CESTAT SMB),

it was held that expenses like medical benefit, subsidized food, canteen bill etc. which form part of cost of final product as per CAS-4 will be eligible as input service. Medical and personal accident insurance, catering bills, personal accident policy is ‘input service’. Landscaping of factory garden is also ‘input service’, as definition of input service is very wide.

2)Canteen is a statutory requirement. Hence, credit of service tax paid on canteen bills is allowable as it is ‘input service’ – Indian Card Clothing v. CCE (2008) 15 STT 79 (CESTAT SMB).

3)Repairs of equipment in canteen – Repairs of deep freezer in canteen is input service – Reliance Industries v. CCE (2010) 28 STT 155 (CESTAT SMB).

4)Canteen services eligible for Cenvat credit – Stanzen Toyotetsu India v. CCE (2009) 21 STT 321 (CESTAT) * Stanzen Toyotetsu India v. CCE (2009) 23 STT 40 = 44 VST 227 (CESTAT) * Tata Motors v. CCE (2010) 24 STT 103 (CESTAT SMB) * Tecumsch Products v. CCE (2010) 26 STT 175 (CESTAT SMB) * Mahindra Sona v. CCE (2010) 24 STT 198 (CESTAT SMB) – view confirmed in CCE v. Stanzen Toyotetsu India (2011) 32 STT 244 = 12 taxmann.com 101 = 44 VST 234 (Karn HC DB).

Thanks & regards
Ganesh babu k

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 SIR CAN U PLEASE HELP ME FOR THIS QUESTION:-
can i know facilities like town,creches, education , rural community development comes under input service as these services are being provided to th employees for motivating them to work properly which help the production indirectly.SO DOES IT COMES UNDER INPUT SERVICES

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

19 June 2013 1)no above said was not under definition of input service in my view..

2)i don't think it is related to manufacture/business

3)so above said are not eligible for input service

4)if training is provided to employee it can be said to be input service

Thanks & regards
Ganesh babu k

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

19 June 2013 you may take credit on below

1)Bus service used to transport employees is ‘input service’ – CCE v. Haldyn Glass (2010) 24 STT 193 (CESTAT SMB) * Hindustan Coca Cola Beverages v. CCE (2010) 251 ELT 125 (CESTAT SMB).

2)Insurance charges are eligible for Cenvat credit –

CCE v. CCL Products (2009) 22 STT 36 (CESTAT)

3)Service tax paid on group insurance health policy of workmen/employees is eligible for Cenvat credit –

Stanzen Toyotetsu India v. CCE (2009) 21 STT 321 = 44 VST 227 (CESTAT) *

Thanks & regards
Ganesh babu k

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now