cenvat credit of canteen service

[sukhvinder singh]

Dear Sir ,

 Please clear ,can a company avail the service credit on the service of  canteen ,if that situated   indise the  company premises.

Please provide the related notification , circular or any case law

Thanks

[Sucheta Agrawal]

Dear Sir,

as per the amended definetion of input services

Exclusions made for -

Services such as those provided in relation to outdoor catering, beauty treatment, health service, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insurance and travel benefit extended to employees on vacation such as leave or home travel concession, when such services are used primarily for personal use or consumption of any employee.

Thus now credit is not available on Canteen services

[Vijay Chitte]

No,

From 01.04.2011 service tax credit is not available on canteen services, which is part of exlcusion defination of input service, But before 01.04.11 there is a scope for argument.

[Snehal Kulkarni]

Please refer to the Notification No 03/2011-NT. Cenvat Credit is not available on the Out door Catering Services.

But Prior to 01.04.2011, you can avail the Credit.

Only have to prepare yourself for Litigation. There are decisions in favour of assessee like In case of Larsen and Toubro Ltd.

 

 

[DEV KUMAR KOTHARI]

Check new Rules carefully to find out whether in house canteen service for own employees engaged in manufacture or services can be considered as input service for manufacturing of goods or renderign taxable services?.

 

If so than goods and services used in own canteen run by assessee himself for own employees may be eligible for CENVAT.

AI Summary

Cenvat credit on canteen services restricted as input service exclusion; prior availability may require litigation. Availability of Cenvat credit on canteen services is restricted by the amended input service exclusions which deny credit for services used primarily for employees' personal consumption, including catering and outdoor catering; prior to the amendment claimants could argue entitlement and some decisions favored claimants, while in-house canteens integral to manufacturing may still warrant close rule-based analysis and potential litigation.