Menu
Cenvat on canteen service
our company is engaging contractor for providing canteen facilities for workers. cost of meal is paid by workers themselves. canteen is under factories act.but no ac is installed. so it is not covered under exemption. therefore the contractor charges service tax on its service charge.
can we take cenvat credit of the same?
Replies (4)
Sir, the service tax is exempted by notification no. 25/2012-ST (Sl. No. 19). As the service tax itself is not payable, no question of cenvat credit.
I agree with Mr Deepak. Please refer notification 14/2013- service tax dated 22/10/2013.
Even if he has charged service tax, credit is not available. Canteen expenses incurred on account of employees is specifically excluded from the definition of Input Service. Refer Rule 2(l) of CENVAT Credit Rules,2004.
Exemption is available only when canteen has centralised heating or air conditioning. Since it is not there, the exemption doesn't apply..
Further, if the employees are paying for.the meal themselves, can the cenvat on service charge paid by the company to contracter for facilitating the canteen.work be.denied?
Sir pl. Refer Sl. No. 19 of the exemption notification. All canteens without AC were already exempted. The further notification has only been issued only to cover AC canteens situated in the factory.
Anyway cenvat credit is not available specifically when the cost of meals is being paid by workers themselves.
Recent Topics :
- Police Bandobost and GST Invoice
- Understanding where manual effort goes in audit wo
- Scanned purchase bills to Tally XML with GST check
- TDS applicability of foreign remittance to Oracle
- GSTR 9 LATE FEE
- Best Online Mock Test Series for CA Inter January
- COST OF IMPROVEMENT
- Pillows and Mattresses
- GST Applicability for Reg. / Un-Reg. Indian custom
- Amended GST Act & Rules
Related Topics :
CAclubindia
