Credit of Service tax on telephone bill, mobile as well as land line

[Asked by Guest]

whether st paid on telephone bill mobile as well as land line, credit can be claimed or not

[Surender Gupta]

There is no confusion and you can avail the cenvat credit on telephone bills of mobile phone or land line phone.

[Madhukar N Hiregange]

Yes the same in my view was always available. But with effect from 10.9.2004 the same is available. Recently there is a circular hwich clarifies this position. The condition is that it should be used by a manufacturer in or in relation to manufacture or clearacne of goods and for the taxable service provider USED FOR PROVDING THE TAXABLE SERVCIES. This means that for a servci eprovider the nexus should be near for a manufacturer the scope of credit is much larger.

AI Summary

Cenvat credit on telephone bills available when used in manufacture or for providing taxable services; nexus stricter for service providers.
Availability of Cenvat credit on telephone bills (mobile and landline) is affirmed where the service is used by a manufacturer in or in relation to manufacture or clearance of goods, or by a taxable service provider for providing the taxable services; a clarifying circular of 10.9.2004 confirms this, and the necessary nexus is stricter for service providers while broader for manufacturers.