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

[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

Can Service Tax on Phone Bills Be Claimed as CENVAT Credit? Confirmed for Manufacturers Since 2004. A discussion on whether service tax paid on telephone bills, including mobile and landline, can be claimed as credit. Two contributors confirm that CENVAT credit is available for such expenses. One participant mentions that this credit has been available since September 10, 2004, and highlights a recent circular clarifying this. The credit is applicable if the phone service is used by a manufacturer in relation to the manufacture or clearance of goods, or by a service provider for providing taxable services, with a broader scope for manufacturers.