Input service of ST paid on Company Vehicle

[Srivatsan Krishnamachari]

Dear Gentlemen,

 

Kindly clarify the folowing queryof mine.

A Director/ Managing Director is provided with Company -Car.the Car is inthename of the Company the car is used by the Director or managing Director concerned for uses mainly Official and to cerain exent personal uses. Whether the Company can take credit of the Service Tax paid on the Service charges paid to the Car Service Staions.

Thanks & With Regards,

K.Srivatsan

AI Summary

Cenvat credit on motor vehicle services is restricted and generally disallowed unless vehicle use falls within specified taxable businesses.
CENVAT credit for service charges relating to a company-owned motor vehicle is excluded under the amended definition of input service except where the vehicle is used to provide taxable services for which the motor vehicle is allowable as capital goods; only specified service providers qualify automatically, and other companies must prove a direct or indirect nexus to manufacture or taxable output services, a position that is legally uncertain and audit-prone.