Service Tax input

This query is : Resolved 

30 June 2009 Dear Sir,

please provide me your export opinion towards service tax input
if a company reimburse the mobile bill to employees
can the company take the input credit of service tax based on mobile bill reimbursement or produce by employees.bill is in employees name only

company is also paying FBT on the reimbursement amount towards mobile bill

30 June 2009 You cannot take input credit on reimbursement of mobile bill to employees. The mobile is under company name and given to the employees to use it for the purpose of office use. Thus, you not eiligible to take the input credit in this matter.

Hope the above clarify

30 June 2009 Any service in relation to business is 'input service'. As regards mobile phone, when the company reimburses the phone bill, it means company treats it as 'perquisite' of employee. Company pays fringe benefit tax on it. Thus, all the telephones (private or for business use) are 'in relation to business' of assessee and hence come within the definition of 'input service'. No need to segregate, you can take the cenvat credit.

01 July 2009 Prima face you can not claim.. Further, to avail the input credits there are certain conditions to be fulfilled. Pls refer the service tax rules.


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