Input Credit of Mobile Phones

[ABHINEET SHUKLA]

XYS Manufacturing Company which provided Mobile phones to Managers Can eligible for cenvat credit of Same.Can I expect a different answer if XYS is in Service Sector.

[Ramanujam Varadarajan]

Whether a manufacturer or service provider, cenvat credit on mobile phones are eligible if it is related to business.  If the manufacturer/service provider involve in manufacture of dutiable goods or provision of taxable service in full, then full cenvat credit on mobiles phone is eligible  If they are partly involved in manufacture of dutiable/non-dutiable goods or provision of taxable/exempted service, then cenvat credit on mobile phones is eligible in proportion to its usage towards manufacture of taxable goods/provision of taxable service 

[K Balasubramanian]

Though I concur with the views already posted, it is suggested that the connections should be in the name of the company.

AI Summary

Cenvat credit on mobile phones allowed for business use; full credit if wholly for taxable activity, otherwise proportionate. Cenvat credit on mobile phones is allowable for business use: full credit when activities are wholly for manufacture of dutiable goods or provision of taxable services; otherwise credit must be apportioned in proportion to use for taxable manufacture or provision of taxable services. Maintain company registered connections and records to substantiate entitlement and allocation.