Lease Credit

[Rajan Rajan]

Sir,

Whether Cenvat credit eligible for lease service and Internet services.

[PAWAN KUMAR]

Dear Sir,

As per my view, the same is related to computer networking and eligible for Cenvat Credit under rule 2(l)(ii) of Cenvat Credit Rules, 2004.

[DR.MARIAPPAN GOVINDARAJAN]

Leased circuit is provided by the telecom service providers for internet purposes which comes under the definition of 'computer network' and as such eligible for CENVAT credit.

AI Summary

Cenvat credit for leased internet circuits affirmed as eligible where the service constitutes a computer network input. Leased circuits supplied by telecom providers for internet purposes are treated as part of a computer network and therefore considered eligible for Cenvat Credit; the replies equate leased internet circuits with services within the definition of computer network and conclude such supplies satisfy conditions for credit under the applicable Cenvat framework.