TaxTMI 
TaxTMI 
Sir,
A Manufacturer can avail input service tax credit on Air travel agent service ?
Rgds
Yateen vyas
Cenvat credit on air travel agent service
16 May 2013 
2 Replies 
8507 Views Asked by
Input service credit for air travel agent services allowed for business use, denied for employee personal travel benefits.
Input service credit for air travel agent services is available when such services are used in relation to manufacture or provision of taxable goods or services or to supporting business functions (e.g., modernization, repairs, storage, quality control, recruitment, accounts, audit, sales promotion, procurement, legal services, financing, computer networking). Credit is not available where the services constitute travel benefits provided to employees for personal use such as vacation, leave or home travel concessions. (AI Summary)
Input service credit for air travel agent services is available when such services are used in relation to manufacture or provision of taxable goods or services or to supporting business functions (e.g., modernization, repairs, storage, quality control, recruitment, accounts, audit, sales promotion, procurement, legal services, financing, computer networking). Credit is not available where the services constitute travel benefits provided to employees for personal use such as vacation, leave or home travel concessions. (AI Summary)