Cenvat credit on air travel agent service, Service Tax

[yateen vyas]

Sir,

A Manufacturer can avail input service tax credit on Air travel agent service ?

 

Rgds

Yateen vyas

Posts / Replies

[Pradeep Khatri]

Eligible if in relation to manufacture or provision of taxable goods/services, modernization or repairs of factory or office, storage, quality control, recruitment, accounts, audit, sales promotion, procurement of inputs, legal services, financing, computer networking

[R MUTHURAJ]

Dear Mr.Yateen vyas,

To supplement Mr.Pradeep view, the following provision would be helpful.

 Exclusions in Input services: "Services provided in relation to outdoor  catering, beauty treatment, health service, cosmetic and plastic surgery, membership of  a club, health and fitness centre, life  insurance, health insurance and travel  benefit 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" 

Input service tax credit on Air travel agent service, is not eligible if the travel benefits are incurred by the employees for personal use other wise eligible as per the reply given by Mr.Pradeep.