Service tax credit on employee bus

Others 2058 views 6 replies

Sir,

Our Company engage buses for employee transporatation from their destinations to company and company to their destinations. vendor charging 10.3%(10%+2%+1%) service tax on invoice.

is this services eligible for service tax credit, please clarify.

Replies (6)

Eligible to claim Service tax credit as per my understanding.

There is one amendment in the definition of input service w.e.f. 01.04.2011,which specifically exclude rent a cab service as a input service. Therefore u are not eligible for service tax paid to bus service provider w.e.f.01.04.2011
There is one amendment in the definition of input service w.e.f. 01.04.2011,which specifically exclude rent a cab service as a input service. Therefore u are not eligible for service tax paid to bus service provider w.e.f.01.04.2011

agree  with anup gupta...

company can not take service tax credit on any service used primarily for personel use or consumption of an employee.

Service related to Employees welfare such as Bus Transport, Residential colony welfare activities, repairs not eligible to take SERVICE TAX INPUT CREDIT as per my knowledge.

agree with gupta and sandya


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