Service taxinput on telephone

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Yogesh (Querist)
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17 June 2013 I am working in ABC Pvt. Ltd. company give me telephone with postpaid for using. and bill pay by company. bill in Favore in yogesh goyal C/O ABC Pvt Ltd. address also mention in bill of company. so I want to be ask that ABC Pvt.Ltd can be avil service tax input which mention on telephone bill. Pls clear with section.
Yogesh Goyal

CA Kapil Verma

CA Kapil Verma (Expert)
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17 June 2013 yes, if the said person is the director of company and phone is used for office purpose.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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17 June 2013 Yes input can be taken if used for Official Work

Ganeshbabu K

Ganeshbabu K (Expert)
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17 June 2013 1)Telephones at residences of executives –

The use of telephones at residences of executives for official purposes should be considered as ‘activity relating to business’. Hence, the service tax credit should be eligible.

2)Even if part of use of telephone is for private purposes, still it is a perquisite to employee and is ‘relating to business’.

3)Even service tax paid on mobile phones will be eligible, if it is in relation to business.

4)Landline phones installed in residences of officers and directors of company is for business purpose and Cenvat credit is eligible –

(i)Keltech Energies v. CCE (2008) 14 STT 419 (CESTAT SMB) *

(ii)ITC Ltd. v. CCE (2009) 20 STT 110 = 42 VST 383 (CESTAT SMB) *

(iii)CCE v. Greaves Cotton (2009) 239 ELT 137 = 33 VST 94 (CESTAT SMB) *

(iv)CCE v. Andhra Pradesh Paper Mills (2010) 254 ELT 354 (CESTAT SMB) *

(v)Ace Glass Containers v. CCE (2010) 250 ELT 110 (CESTAT SMB)

5)Legally, the telephone need not be in name of manufacturer/service receiver. What is essential is that the input service should be utilised for purpose of business of person utilising Cenvat credit. It is advisable to take endorsement from employee on the invoice.

Thanks & regards
Ganesh babu k

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