TaxTMI 
TaxTMI 
Cenvat credit of service tax in hotel stay bill
X X X X Extracts X X X X
X X X X Extracts X X X X
....envat credit of service tax in hotel stay bill<br> Query (Issue) Started By: - VISHNU PRAKASH SAINI Dated:- 19-1-2015 Last Reply Date:- 28-1-2015 Service Tax<br>Got 3 Replies<br>Service Tax<br>How can show the Cenvat credit of input service tax in hotel stay bill in filing of service tax return. Where S.Tax charge after taking the benefit of abatement.and we charge the output service tax as full r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate of service tax.i.e. 12.36% Reply By Rajagopalan Ranganathan: The Reply: Sir, Rule 2 (l) (C) of CENVAT Credit Rules, 2004 stipulates that the definition of 'input service' excludes such as those provided in relation to outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, membership of a club, health and fitness centre, life insurance, health insuranc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e and travel benefits 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. However it is not clear from your query who avails the service. It is whether your employees or your guests, Anyway the department will make objection for availing the credit of service tax paid for services rendere....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d during stay in hotels on the ground that the service are consumed for personal use of your guests/employees. Therefore before taking the credit please get suitable clarification from your Range Officer and/or the Department. Reply By Pradeep Khatri: The Reply: Dear Vishu, Agreed with Rajagopalan Sir's view in this matter. Further, you must go through the Hindustan Coca Cola judgment for k....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nowing about the new developments in such matters. Regards, Neelam Taneja- Executive Consultant YAGAY and SUN (Management, Business and Indirect Tax Consultants) Reply By Akash Deep: The Reply: agree with the experts.Term "personal use" is of great importance. when such services is used for personal use of the employee, they are excluded from definition of input service. for exampl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e an employee who stay in a hotel during a bushiness trip organized by his employer or a trip in discharge of his official functions would qualify as input service. however if same employer decide to sponsor the foreign holiday trip for his best performing employee, hotel services used by employee in that situation would not be treated as input services. one more suitable example would be group i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsurance policy taken my employer under ESI Act or other statute, would also be covered under input services. here employer is discharging his own statutory liability rather the giving any benefit to the employees. Though ultimately employees is benefited, but that is nly an indirect effect of the statutory obligation on employer. make your decision on above line of thughts<br> Discussion Forum -....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Knowledge Sharing ....