Service tax paid on telephone bill can be treated input ?

@ Vijay

Yes vijay any service tax paid on servcices used for rendering output services by a service provider will be elligible for CENVAT credit under CENVAT CREDIT RULES 2004.

There are specific exclusions from the definition of Input Service under rule 2(l).Service Tax paid on telephone bills are not under the ambit of the exclusions!

Originally posted by : vijay
	whether service tax paid on telephone bill can be treated as input for a service provider?

Yes , refer rule 2(l) of CCR.

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Yes, but it must be for Business purpose... Even Mobile number taken on the name of Employees are eligible for Cenvat Credit... But We cant prove that every phone calls made are only for Business purpose... And therefore, in Service Tax Audit, Department asked to reverse such credit... Hence, it is advisable not to take Input servica tax credit on telephone bills to avoid such litigation...

But whether i can avail full input credit  without following Rule 6 of CENVAT credit rules,as i am providing both taxable and non-taxable services.

Khurram

SIR,

ONLY LAND LINE INPUT CREDIT  WILL BR TAKEN 

BECAUSE MOBILE BILL USE FOR BUSINESS PURPUSE AS WELL AS  PERSONAL  PERPOSE SO DEPATMENT NOT GIVEN CREDIT ON MOBILE PHONE SER. TAX

thanks to all

YOU CAN TAKE CREDIT IF YOU ARE PROVIDING CORRESPONDING OUTPUT SERVICES OF IT