Cenvat Credit on Hotel Bills

[Mathurthi RamKumar]

Dear All,

Greetings of the day. We are a kraft paper manufacturing unit and our CMD and Exe.Directors-Sales will visits clients (old and new )for business promotions purpose. I want to know can we avail s.tax input paid to hotels at the time of business tours?

Kindly clarify me.

Thanks is advance.

Regards

M.RamKumar

AI Summary

Kraft paper manufacturer cannot claim CENVAT credit for hotel expenses during business tours under CENVAT Credit Rules, 2004. A kraft paper manufacturing unit inquired about the eligibility of claiming CENVAT credit for service tax paid on hotel bills during business tours by their CMD and Executive Directors-Sales. Three responses were provided. One response indicated that CENVAT credit might be claimed if the expenses are linked to manufacturing activities and supported by relevant documentation, though hotel bills typically lack such details. Another response stated that hotel stays for employees are not admissible as input services under the relevant rules. The final response confirmed that such activities are specifically disallowed under the CENVAT Credit Rules, 2004.