TaxTMI 
TaxTMI 
Sir
Can cenvat credit be taken on hotel, food bill which was provided by the commercial educational institute to their teachers
cenvat credit on fooding and hotel bill
01 Aug 2016 
3 Replies 
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Cenvat credit on hospitality services requires nexus with output service; otherwise educational institute food and hotel bills ineligible.
Cenvat credit on hotel and food bills provided to staff by a commercial educational institute is generally ineligible where there is no nexus between those hospitality expenses and the output service. Credit may be permitted only if the assesse can demonstrably establish a direct connection to the taxable output activity; limited manufacturing-sector precedents exist. No clear service-tax case law is cited, and Notification No.26/2012-ST (Serial No.4 and its conditions) is referenced as relevant to admissibility. (AI Summary)
Cenvat credit on hotel and food bills provided to staff by a commercial educational institute is generally ineligible where there is no nexus between those hospitality expenses and the output service. Credit may be permitted only if the assesse can demonstrably establish a direct connection to the taxable output activity; limited manufacturing-sector precedents exist. No clear service-tax case law is cited, and Notification No.26/2012-ST (Serial No.4 and its conditions) is referenced as relevant to admissibility. (AI Summary)