Cenvat credit allowed with abatement

14551 views
User Avatar

CA
20 Points Posted on 10 July 2012

Hi Friends,

I am new to the Hotel industry and request you to provide clarification on recent provisions regarding Cenvat Credit allowed with Abatement.

My question is whether Hotel can avail cenvat credit of Rent paid (Which is more then service tax liability under head of Renting of Hotel and Restaurant) and service tax charge on telephone expenses etc..

Thanks

0 Reply Share Follow
On 10 July 2012 at 11:58 Report
Replies (3)
User Avatar

Taxation Manager
20 Points Posted on 10 July 2012
Yes you can avail the credit of input services only while availing an abatement of 40% of the gross bill as per Notification no. 26/2012 (service tax). Hope it will solve your query.
Reply
On 10 July 2012 at 12:05
User Avatar

CA
20 Points Posted on 10 July 2012

The notification does not talk about service tax on supply of food items in restaurant, so does that means no cenvat credit allowed on service tax paid on this servce ??

Reply
On 10 July 2012 at 12:17
User Avatar

Taxation Manager
20 Points Posted on 10 July 2012
The notification says that input credit cannot be taken on Capital goods and inputs, there is no exclusion of input services. So if the type of service received by you is in the nomenclature of input services as defined in rule 2 of CCR, 2004 you will be eligible for the CENVAT credit.
2 Reply
On 10 July 2012 at 12:47

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. Gifting money to my father-in-law (my husband's da
  2. GSTR-1 JSON from marketplace exports (Myntra / Ama
  3. Question on buy back of shares
  4. Saving corporate tax completely on profit from rea
  5. Hi experts need some helps
  6. A query regarding GST and Place of Supply:
  7. ADT-3 not filed by previous Auditor
  8. Revising salary on 24Q Q4 FY 25-26
  9. LTCG: Home Loan Principal Repayment?
  10. Ims action relationship query

More recent discussions | Post

Related Topics :

Loading

Latest Job Openings

View all
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

Jain Ankit and Co

Gurgaon

CA Inter

View Details
Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details