Cenvat credit on air travel agent service

[yateen vyas]

Sir,

A Manufacturer can avail input service tax credit on Air travel agent service ?

 

Rgds

Yateen vyas

[YAGAY andSUN]

Eligible if in relation to manufacture or provision of taxable goods/services, modernization or repairs of factory or office, storage, quality control, recruitment, accounts, audit, sales promotion, procurement of inputs, legal services, financing, computer networking

[R MUTHURAJ]

Dear Mr.Yateen vyas,

To supplement Mr.Pradeep view, the following provision would be helpful.

 Exclusions in Input services: "Services provided in relation to outdoor  catering, beauty treatment, health service, cosmetic and plastic surgery, membership of  a club, health and fitness centre, life  insurance, health insurance and travel  benefit extended to employees on vacation  such as leave or home travel concession,  when such services are used primarily for personal use or consumption of any employee" 

Input service tax credit on Air travel agent service, is not eligible if the travel benefits are incurred by the employees for personal use other wise eligible as per the reply given by Mr.Pradeep.

AI Summary

Manufacturers Eligible for Input Tax Credit on Business-Related Air Travel; Excludes Personal Employee Benefits Per Provisions A manufacturer can avail input service tax credit on air travel agent services if these services are related to manufacturing or the provision of taxable goods or services, such as modernization, repairs, quality control, and other business-related activities. However, input service tax credit is not eligible for services used primarily for personal use or consumption by employees, such as travel benefits for vacations or home travel concessions. This clarification aligns with the exclusions outlined in the relevant provisions, as discussed by the forum participants.