TMI BlogCENVAT Credit on Director Sitting Fee.X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, Please let us know that " CENVAT Credit is available on Director Sitting Fee. OR are we entitled to avail CENVAT Credit on Director Sitting Fee. Wee seek your legal opinion. Regards Pradeep Jain - Reply By Pradeep Khatri - The Reply = Yes, CENVAT credit will be available on Director's sitting fees. - Reply By Dr. Sanjiv Agarwal - The Reply = You can utilise cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on service tax paid on director's fees only if you are providing output taxable services. Thus, in case of trading companies, it may not be possible. Sanjiv Agarwal Jaipur - Reply By Pradeep Khatri - The Reply = Trading is an exempted service, no CENVAT credit is allowed such services. - Reply By Seetharaman K C - The Reply = Cenvat Credit would be available for service tax paid on Dir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectors sitting fees. Since the service tax is payable under reverse charge mechanism by the service reciever or in this case the company, the service tax needs to be paid in cash and CENVAT can be availed on the basis of the payment challan - Reply By Dr. Sanjiv Agarwal - The Reply = Yes provided it is an eligible input service for you. Cenvat can be claimed even under reverse charge but servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tax on director's services under RCM can not be paid thru cenvat but in cash only Sanjiv Agarwal - Reply By SRINIVAS MADALA - The Reply = sir let us know any notificaiton in this regard to be evident to avail cenvat cr - Reply By Seetharaman K C - The Reply = Please refer to proviso to Rule 4(7) of the Cenvat Credit Rules , 2004 which is reproduced as below: Provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in case of an input service where the service tax is paid on reverse charge by the recipient of the service, the CENVAT credit in respect of such input service shall be allowed on or after the day on which payment is made of the value of input service and the service tax paid or payable as indicated in invoice, bill or, as the case may be, challan referred to in rule 9: - Reply By VINOD P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awar - The Reply = But Here the question probably would be whether Directors Sitting fee would qualify for being treated as Input Service . It is definately not directly related to any output service. It is not specifically mentioned in Included Services. Not specifically excluded as it can neither be regarded as personal services nor be regarded as provision for employee benefits. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, in my personal opinion, it may be treated as Legal consultancy services being rendering of services relating to any branch of Law ( statutory obligation to adhere to the provisions of Corporate Laws) . - Reply By Dr. Sanjiv Agarwal - The Reply = Yes, it will be eligible as an input service. - Reply By R. AGARWAL - The Reply = But sir under what head exactly we will classify directors serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice as input service as to avail CVC ?? Further, department is raising objection in audit observation and demanding ST on directors remuneration as shown in financials without making any difference in the capacity of such director i.e Even remuneration paid to M.D who is wholetime director in terms of companies act 2013 demand notices are issued and even comissioner is not agreeing with submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns and hence confirmed demand including interest.. Kindly throw light on any decided ruling of court / tribunal (if any) with your esteemed expertise - CENVAT Credit on Director Sitting Fee. - Query Started By: - Pradeep Jain Dated:- 7-11-2012 Service Tax - Got 10 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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