cenvat credit on fooding and hotel bill

[sarat sahoo]

Sir

Can cenvat credit be taken on hotel, food bill which was provided by the commercial educational institute to their teachers

[Ganeshan Kalyani]

Sir, in my view the Cenvat credit is not eligible as they are not in nexus with the output service provided. However, there are judgments wherein the assesse through advocate establishes the nexus of such welfare activity in manufacturing sector with the production activity. And the authority allows the credit. Anyhow I have not going any case law of this kind in service tax.Thanks.

[KASTURI SETHI]

Not admissible.

[KASTURI SETHI]

For more details go through Notification No.26/12-ST as amended (Serial No.4 along with conditions).

AI Summary

Eligibility of Cenvat Credit on Hotel and Food Bills for Educational Institute Teachers Remains Unresolved; Check Notification No.26/12-ST. A query was raised about the eligibility of Cenvat credit on hotel and food bills provided by a commercial educational institute to its teachers. One respondent stated that Cenvat credit is not eligible as there is no nexus with the output service provided, though some judgments in the manufacturing sector have allowed such credits. Another respondent simply stated that it is not admissible and advised referring to Notification No.26/12-ST for more details. The discussion concluded without a definitive resolution on the issue.