« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Apex court reserves judgement on Japanese company’s plea... `ICAI is not averse to opening up of the accounting sector'... » Cos can claim service tax on mobiles as Cenvat September, 14th 2006 This is a ring tone which the industry would enjoy. Companies can now claim the service tax they pay on cellphones as Central value-added tax (Cenvat) credit. The Mumbai Customs, Excise and Service Tax Appellate Tribunal has ruled that service tax paid on mobile phones is available as credit to eligible service providers of output service and manufacturers. The tribunal held that the term cellular phone would include all kinds of phones which work on cellular technology. The revenue department has been insisting that the credit was applicable only on fixed line phone. Industry can claim credit against the Cenvat it pays and use the credit to offset against the tax it is liable to pay on its inputs. Giving its judgement on a case between Indian Rayon and the commissioner of customs and excise, Bhavnagar, the tribunal made it clear that the department could not rely on the old Central Board of Excise and Customs circular of 03 to deny the credit of service tax. The tribunal said the old circular was relevant under old service tax credit rules, 02, which required the telephones to be installed in the business premises of the service provider. And, since there was no such stipulation in the new Cenvat credit rules, 04, the department could not press the old circular into service. Also, the tribunal pointed out that there was no provision anywhere in the rules disallowing the credit of service tax paid on mobile phones, which in any case was fast replacing fixed line phones in many establishments. It was held that the term cellular phone would include all kinds of phones which would work on cellular technology. Cenvat credit on mobile phones was never intended to be disallowed under the present Cenvat credit rules. It was under the service tax rules 02 that credit was allowed only for fixed line connections. Therefore, clarification issued on the basis of services credit rules 02, that credit of services on the mobile phones will not be allowed as credit has no applicability. Therefore, the judgement delivered by the Mumbai bench will give great relief to assesses for availment of Cenvat credit, service tax expert J K Mittal said. The period involved in the case is from December 04 to February 05.