Please Help: Input or service tax on mobile phone
Posted Date : 09-Jan-2012 , 10:31:25 pm | Posted By Rishabh Upadhyay
My client in chandigarh is an assessee under excise as well as service tax. His taxable services comprises of Rent of Immovable Property and Commission on sale. Will he be entitled to service tax credit on mobile bills used in factory, as the mobile bills have no direct correlation with neither rent nor commission.
Category : Service Tax | Answers : 2 | Comments : 0 | Hits : 364
Answers
Answer By: Ashish Karundia
Dear Rishab,
In the instant case, the client may take the service tax credit on mobile bills if it can be proved that the said mobile is used in the course of business/providing services in the light of the judgment given by the Apex Court in the case of J K Cotton Mills (91 ELT 34 / 16 STC 563).
Hope the above suffice.
In the instant case, the client may take the service tax credit on mobile bills if it can be proved that the said mobile is used in the course of business/providing services in the light of the judgment given by the Apex Court in the case of J K Cotton Mills (91 ELT 34 / 16 STC 563).
Hope the above suffice.
Answer By: Ketan Samdani
The cenvat credit on such mobile will be available.


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