TaxTMI 
TaxTMI 
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.
Service tax credit on Accommodation charges
31 Dec 2015 
9 Replies 
1749 Views Asked by
Cenvat credit on hotel accommodation permitted where stay is for business and invoice links to taxable output service.
Cenvat credit on hotel accommodation is allowable when the stay is for a business purpose, the invoice is in the assessee's name, and the service is in relation to providing a taxable output service or to manufacture and clearance of dutiable goods; deletion of 'activities relating to business' from the input-service definition restricts misuse but does not prevent claims where a clear nexus and documentary proof exist. (AI Summary)
Cenvat credit on hotel accommodation is allowable when the stay is for a business purpose, the invoice is in the assessee's name, and the service is in relation to providing a taxable output service or to manufacture and clearance of dutiable goods; deletion of 'activities relating to business' from the input-service definition restricts misuse but does not prevent claims where a clear nexus and documentary proof exist. (AI Summary)