TaxTMI 
TaxTMI 
CENVAT Credit of Service tax paid on canteen services and on bus hire charges
31 Oct 2006 
3 Replies 
2709 Views Asked by
Guest 
Cenvat credit for employee welfare services can be claimed where services are used in relation to manufacturing.
Whether CENVAT credit is available for service tax paid on canteen services and bus hire charges for employees. Under Rule 2(l) of the CENVAT Credit Rules, 2004, input service means any service used directly or indirectly in or in relation to manufacture of final products; services used for business and bearing a nexus to manufacturing qualify as CENVAT creditable. Replies indicate canteen services have been treated as available and that company-borne bus hire charges, indirectly related to manufacturing, may also be claimed. (AI Summary)
Whether CENVAT credit is available for service tax paid on canteen services and bus hire charges for employees. Under Rule 2(l) of the CENVAT Credit Rules, 2004, input service means any service used directly or indirectly in or in relation to manufacture of final products; services used for business and bearing a nexus to manufacturing qualify as CENVAT creditable. Replies indicate canteen services have been treated as available and that company-borne bus hire charges, indirectly related to manufacturing, may also be claimed. (AI Summary)
Sir, In case of a manufacturing unit where all products are excisable.Can We claim CENVAT Credit of Service tax paid on canteen services and on bus hire charges. Both these facilities are for the welfare of employees and service tax is paid to outside contractors.