Comapny's vehicle - cenvat credit

[HITENDRA DAVE]

service tax cenvat credit eligible or not for company,s vehicle

[Guest]

Dear, it depends upon the circumtances..... i.e. using of vehicle for what purposes..... you did not have mentioned about the same... so without knowing the purpose of vehicle it can be answered.... e.g. if vehicle are used for pesonals purpose then cenvat can not be taken... if vehicle are used for advertisement then cenvat can be taken.... ......

[Surender Gupta]

Only for specified activities mentioned under rule 2(a) of the cenvat credit rules, 2004 are eligible for availing cenvat credit of excise duty paid on vehicles. In general there is no cenvat credit on vehicles.

AI Summary

Cenvat credit on company vehicles limited to specified uses; personal use disallowed, advertising and similar uses may qualify under rules. Availability of Cenvat credit for a company's vehicle depends on the vehicle's use: personal or non business use disqualifies credit, while use in activities that directly support taxable operations (for example advertising) may permit credit. Entitlement is limited to activities expressly covered by the Cenvat Credit Rules, 2004; generally vehicles do not attract cenvat credit unless the use falls within specified categories under those rules.