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.

AI Summary

CENVAT Credit Eligibility for Mobile Phones: Business Use Required, Proportionate Credit for Mixed Activities, Register Under Company Name. A query was raised regarding the eligibility of XYS Manufacturing Company to claim CENVAT credit on mobile phones provided to managers. It was questioned whether the eligibility differs if XYS operates in the service sector. The responses clarified that CENVAT credit is available if the phones are used for business purposes. Full credit is available if the company is fully involved in manufacturing dutiable goods or providing taxable services. If involved in both taxable and non-taxable activities, credit is proportionate to usage. Additionally, it was suggested that the mobile connections should be registered under the company's name.