Service tax credit on Accommodation charges

[SURYAKANT MITHBAVKAR]

We have paid Accommodation charges to our customer alongwith service tax @8.4% charged by Hotel.

Can we avail service tax credit for the same.

AI Summary

Can Service Tax Credit Be Claimed for Hotel Stays on Business Trips? Eligibility Criteria Explained. A discussion on a forum addressed whether service tax credit can be claimed for accommodation charges paid to a hotel if the stay is for business purposes. One participant affirmed that if proof of business purpose is provided, cenvat credit can be claimed. Another noted that the term 'business activity' was removed from the definition of input services, raising questions about eligibility. Participants emphasized that the credit is valid only if the accommodation relates to providing taxable output services and if the bill is in the claimant's name. A recent case was mentioned where an objection was resolved favorably.