Service tax on mobile charges for personal charges

This query is : Resolved 

14 August 2012 Co provides mobile facility to employee for business calls. In some cases employee use mobile for personal calls also and so they pay back to company or offer deduction from their payroll. Is Service tax is applicable on such cases? (i.e. Company to Employee)

14 August 2012 as mobile services are already taxed by the service provider (telecom companies) and no input credit is available on mobile bills,

so such amounts would be added to salary only and would be accounted accordingly.

14 August 2012 I beg to differ with Mr Sharmaji view,

Service tax would be applicable on such deduction if made from employees salary - irrespective of the fact that whether CENVAT credit has been availed or not on such services.

Also, CENVAT credit could be availed on such mobile bills subject to proper documents


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