In case of the partnership firm, some of the bills for input services such as mobile, vehicle maintenance etc are in name of the partners. As per Income tax law, these are treated as businsess expenditure.
So in our view, these bills for services should be allowed for cenvat credit.
Is there any caselaw to strengthen this view? Any article or experience or opinion is welcome on this.
Can a Partnership Firm Claim Cenvat Credit on Services Billed to Partners? Rule 9(5) of Cenvat Credit Rule 2004 Clarified. (5) A discussion on a forum addresses whether a partnership firm can claim Cenvat credit on input services billed in the partners' names, which are considered business expenses under income tax law. One participant clarifies that according to Rule 9(5) of the Cenvat Credit Rule, 2004, Cenvat credit can only be claimed on invoices issued in the firm's name, not the partners', as the firm is the registered entity. Another participant questions if there is a rule prohibiting Cenvat credit when expenses are also claimed under the Income Tax Act, seeking further clarification. (AI Summary)
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