Claim of Cenvat Credit

[shyamal roychowdhury]

My client is a professional. He has number of engineers who works in feild . He has also office staffs. The arranbement is that each will have a mobile phone which is own by him ofcouece with the deductable advance from salary & sim card also in his name , the cost of which is also reimburesed by office , The entire monthly bill is paid by office. Now we want to claim cenvate since 100% bill is paid by office . Now the query is .Can my client claim cenvate since the it is an office expence although the bill is in the name of each individuals / We also take a declaration the mobile is used for office , Pl . let me know can we claim cenvate & if yes the notification /circular number & if not the circular/notification no .

AI Summary

Cenvat credit availability on employer paid mobile bills depends on compliant invoices and possible divisional permission.
Whether an employer may avail Cenvat credit on mobile phone service tax paid where bills are paid by the employer but invoices are in employees' names: one view, citing a tribunal decision, finds credit available under the Cenvat Credit Rules, 2004 because no provision expressly prohibits such credit and timing is governed by payment and invoice particulars; another view relies on Rule 9 and Service Tax invoice requirements, noting that invoices naming only employees and reimbursements as perks preclude self credit absent divisional authority permission under the proviso to sub rule (2) of Rule 9.