Eligibilite of Cenvat Credit of Service Tax

[Chetan Pawar]

Dear All,

We are the manufacturer as well as service provider, our manufacturing facility in Maharashtra and we are providing the technical service to our customer in Rajasthan, we are deploying the some manpower in Rajasthan to give the service to the customer.

so my query is We taking some services in Rajasthan ( Like Hiring of Crane for Loading Unloading, hotel Accommodation Exp for Employees, Food Charges of Employees, Mobile bills for Employees) , can we taking the credit of the above said services, we had taken our customer site? Please confirm.

Thanks and Regards,

Chetan Pawar

9970686579

[Lekh Sood]

In my view you can take the credit of service tax paid on such services if these are used to provide services to customer.

[Chetan Pawar]

Dear Sir,

Thanks for the Reply, but can you please provide me any legal aspect for the same. as because we can take the credit up to place of removal and we are taking these services at our customer location.

Please reply

Thanks and Regards,

Chetan Pawar

[Lekh Sood]

In the case of services the place of removal will be the place of rendering services.

[Guest]

You can take credit of ST on Hiring crane but not on Accomodation Exp etc which is directly consumed by the employees. In any case if it directly consumed by the empolyees on such service input not allowed, ex, Canteen, Mobil bill...

Regards

Srikant

[Lekh Sood]

Now there is a ruling on this point of "for the personal consumption of employee".Please refer

M/s HINDUSTAN COCA COLA BEVERAGES PVT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NASHIK =  2014 (12) TMI 596 - CESTAT MUMBAI

AI Summary

Cenvat credit eligibility: input services used to provide taxable services allowed, but employee personal consumption disallowed. Cenvat credit is claimable where input services procured at a customer location are used to render taxable services, with the place of rendering treated as the place of removal. Credit is not allowable for services that amount to personal consumption by employees (such as accommodation, food, and mobile bills), whereas hiring of equipment like cranes used in providing the service is treated as an eligible input service.