Service tax credit on tel bills & bank chrgs

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Mandar

Mandar (Querist)
Follow

03 July 2007 Can service tax credit on Telephone bills & bank charges be claimed for paying service tax.

Amit Thapar

Amit Thapar (Expert)
Follow

03 July 2007 Yes.

Shashi Mohan Jha

Shashi Mohan Jha (Expert)
Follow

04 July 2007 Yes!! it is possible, provided Tel is installed in business (no mobile). Please refer ST.Circular No.59/8/2003 clause 2.8

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

04 July 2007 I beg to differ from the opinion expressed regarding eligibllity of Cenvat Credit on mobile phone.

In the case of "Indian Rayon & Industries Ltd. vs. CCE Bhavnagar 2006 (4) STR 79 (Tri-Mumbai)", the Tribunal Held that service tax paid on mobile phone is available as credit to eligible service providers/manufacturers in the absence of any express prohibition under CENVAT Credit Rules, 2004. It is further held that Board's Circular No. 59/8/2003-ST dated 20-06-2003 was relevant only under the erstwhile Service Tax Credit Rules, 2002 and can not be mad applicable to CENVAT Credit Rules, 2004.

Based on the above, Cenvat Credit on telephone bills, whether fixed or mobile, is available - in my opinion.

Shyam Lal Naik

Shyam Lal Naik (Expert)
Follow

05 July 2007

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