Provisions for availing credit on mobile phones

[gaurav thapar]

Is service Tax credit available on Mobile phones, if yes, then under what provision?

[Surender Gupta]

Now there is not confustion. A similar issue has been decided by the honorable tribunal in "Indian Rayon Industries Ltd." published on this site as 2006-TMI-620. You are eligible for availing credit of service tax paid on Mobile Phone bills.

[Madhukar N Hiregange]

Yes available as long as the same is used for providing the servcies. This is under the cenvat credit rules 2004

for availing the service tax credit specifically on the mobile phone ; this subject to the some conditions preveling for the same; such as the same should be 100% used for the purpose of providing the related output services in relation to the Input service tax paid by the assessee and the same should be used in the factory of the assessee and not in premises of the office. but for the revenue point of veiw, its better that unless for the specific industry, not to avail the benefit of input service tax credit unless the assessee has documentary proof for claiming the same. Thanks & regards, Amit Rustagi 9212114522

AI Summary

Service tax credit on mobile phones permissible if used for providing taxable services with documentary proof.
Availability of service tax credit on mobile phone bills is accepted under the CENVAT Credit Rules where the mobile service is used in providing output services; claimants must show documentary proof and the use should demonstrably relate to the taxable output, with some commentators noting factory premises use rather than office premises.