Hello All,
Can we take the input service tax credit for the payment made in respect of bill raised for serving food and conference hall of a five star hotel...... the bill is containing service tax..... we r providing financial services.........................
Dear Vinay,
The input service tax credit will be allowed only if the expenditure is a necessity for the purpose of furtherance of the business. If the expenditure is for say, employee get together, annual party etc.. it will be disallowed by the department.
Thanks,
Ganesh
CAclubindia
