ST on catering and hospitality service!!

1165 views 2 replies

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.........................

Replies (2)

i think 

if u have take the benefit of prescribe  abatement under act

then u can not get  input tax credit ...

otherwise u can take the benefit of input tax credit

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

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