CENVAT CREDIT ON RESEDENTIAL CONLOY & HOSPITAL FOR STAFF

[abbas mukhi]

SIR,

WHETHER CENVAT CREDIT FOR EXPENSES INCURRED FOR STAFF COLONY AND HOSPITAL IN STAFF COLONY IS ELIGIBLE ??

AI Summary

Cenvat credit eligibility: services primarily for employee personal use at staff colonies or hospitals are generally ineligible for credit.
Claiming Cenvat credit for expenses on a staff colony or on-site hospital depends on whether those services qualify as input service; Rule 2(l)(c) excludes services provided primarily for employees' personal use, and the illustrative phrase "such as" is not exhaustive. Services chiefly for employee personal consumption at staff housing or hospital premises are therefore generally ineligible for credit.