Can CENVAT be taken on service tax part on flight fare

Queries 7541 views 6 replies

CA Arun Chhajer

GST Faculty @ Ministry of MSME Govt of I

2813 Points Joined December 2010

We (Nature of Company is Asset Management Company) have hired a travel agent through whom we book tickets for business-related travel of our employees. The tickets issued by the airline companies are in the name of passengers, that is, in the name of our employees who are travelling and not in our firm’s name.Further, the airline does not give us any invoice.

Can we take credit of the service tax paid by us on such air tickets? If yes, on what basis can the credit be availed?

Thanks & regard

Arun Chhajer

Replies (6)

Anil Kumar

Assistance Manager-Finance & Accounts

42 Points Joined July 2011

you can't taken credit of the service tax input becouse,If Airlines company or agents will be given invoice or bill in the name of your company name than you will be taken cenvat credit .otherwise your's emloyees name's invoices ,bills & ticket not applicable for service tax input.

hitesh

Telecom Industry

169 Points Joined January 2011

No..Cenvat cannot be taken.. This seems to be a reimbursement to employees, so the full amount (including service tax) shall be booked as an expense and will be available for deduction under Income Tax Act....