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Is service tax credit available on hotel bills.??
IS SERVICE TAX CREDIT AVAILABLE ON HOTEL BILLS.??
Replies (5)
No credit would be allowed on such activities as these are specifically disallowed in the definition of the the Input Services under the CENVAT credit Rules, 2004 as amended from time to time.
As per Rule 2(i) of CCR, 2004 - Excludes only the travel benefits extended to employees on vacation only when such services are primarily used for personal consumption.
If it in relation to business to provide output service, the credit for the same is availble.
Its a matter of facts
The deciscion of Mumbai Tribunal in the case of Coca Cola Beverages 2014 TIOL-2460-CESTAT-Mum, may be useful in this context.
The Honble Tribunal allowed CENVAT credit of ST paid on out door catering services.
I agree with one of colleague that it is purely the matter of facts and if the hotel bill is regarding some advertisement meet and sales promotion activity then its credit can be used while if the same was regarding regular party of employees or else regarding this then it can't be availed.
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