Interpreter service, Service Tax

[yateen vyas]

Dear Experts,

we have taken a Chinese interpreter service from a company in relation to our machine installation,so my question is that as we are a manufacturing company can we are eligible to avail Cenvat credit on this interpreter service.

Rgds

Yateen vyas

Posts / Replies

[Pradeep Khatri]

Dear Yateen,The contract/agreement/Service agreement should specifically mentions that you are availing such services for the purpose of removing the language bar for the purpose of installation of imported machinery which in turn would be used in manufacturing of excisable finished goods. In our opinion since such services are in or in relation to installation of a machinery which is synced to manufacturing, therefore, you can avail the CENVAT credit on the services provided by the interpreter as without such services machinery may not be installed as need. To audit parties, you should be able to prove the nexus between the services received and manufacturing of finished goods.RegardsYAGAYand SUN(Managementand Indirect Tax Consultants)

[Akash Deep]

Dear Yateen

Credit is available on interpretor's services and there in-directly in relation to modernisation of the factory.