TaxTMI 
TaxTMI 
Dear All,
We also paying telephone bills/insurance premium for car and machineries which also includes service tax can we claim the input credit against the output liability.
Please reply..
Input Credit
17 May 2017 
2 Replies 
2192 Views Asked by
Input tax credit for service tax on telephones and machinery insurance allowed when used in business, but restricted for personal-use passenger vehicles.
Service tax on telephone charges is admissible as input tax credit when the telephone is used in the course of business; service tax on insurance premiums for machinery used in manufacture is also eligible. However, credit for insurance on passenger motor vehicles is restricted under the Cenvat Credit Rules and is not available where the vehicle is for personal use by employees or directors. (AI Summary)
Service tax on telephone charges is admissible as input tax credit when the telephone is used in the course of business; service tax on insurance premiums for machinery used in manufacture is also eligible. However, credit for insurance on passenger motor vehicles is restricted under the Cenvat Credit Rules and is not available where the vehicle is for personal use by employees or directors. (AI Summary)