Service tax credit

[NANDA H.L.]

Dear All1. Shall we avail service tax credit on Telephone payments (telephone installed & billing address to company only)& also for the mobiles (Billing to company address & cell phone issued to company engineers & executives only)2. Credit on Insurances (company covered fire & theft)3. Bank charges on CC limitPlease suggest

[Madhukar N Hiregange]

AS long as you are a manufacturer of dutiable goods or provider of taxable services- you are eligible for all. If exempt goods/ services then restriction under Rule 6(3) maybe examined.

[YAGAY and SUN]

Dear Nanda H.L.

You are eligible to avail the CENVAT credit on Input Services subject to the provisions of CENVAT credit Rules, 2004 as amended from time to time.  Kindly also refer to the definition of the Input Services amended w.e.f. 01-04-2011 in this regard.

Regards,

Team YAGAY & SUN

(Management and Indirect Tax Consultants)

AI Summary

CENVAT credit eligibility for corporate telephony, insurance and bank charges where services support taxable manufacturing or services.
CENVAT credit on telephony, mobile phones issued to employees, insurance premiums and bank charges is available to manufacturers of dutiable goods or providers of taxable services, subject to the CENVAT Credit Rules, 2004 and the definition of Input Services (as amended). If goods or services are exempt, the applicable restriction on credit must be examined and procedural and documentary compliance under the CENVAT regime must be satisfied.