We have hired Air Craft on rental basis for traveling purposes exclusively for the Directors of our company at various places for business purposes. Kindly let us know whether we are eligible for taking CENVAT credit on said input service or credit shall be denied by the Department.
Regards,
VINAY
CENVAT Credit Eligibility on Aircraft Rentals for Business Travel by Directors: Ensure Agreement Specifies Business Use A company inquired about the eligibility for CENVAT credit on renting an aircraft for business travel by its directors. One respondent noted that if the aircraft is used for providing output services, credit might be allowed, though there are doubts about service tax applicability on rentals. Another stated that if the aircraft is hired for business purposes, credit can be availed, and requested details about the service category and agreements. The inquirer confirmed an agreement with a minimum monthly rent. It was advised to ensure the agreement specifies usage for business purposes to claim the credit. (AI Summary)
TaxTMI 
TaxTMI 
