Service Tax Credit Received on Resort Bill, Service Tax

[Ramesh M]

Dear Experts, 

We are manufacture of Engineering Goods, recently we conducted yearly operation meeting in a resort to discuss Manufacturing strategy and set targets.  We received Bill from Resort and they charged service tax. Can we take credit ??

Ramesh M

Posts / Replies

[Pradeep Khatri]

Dear Ramesh,

After the amendment in the definition of Input Services, it would be difficult to prove a nexus with such activities with manufacturing activities.  The phrases Business Activities, Such As, has been removed from the definition of input services w.e.f. 01-04-2011. It would be better, if you don't claim the service tax as CENVAT credit.

Please check the definition of Input services in this regard under the CENVAT credit Rules, 2004 as amended from time to time.

In case you need a written opinion on this matter, then, you may do contact us.  We do charge a nominal fees for our services.

Regards,

Team YAGAY & SUN

(Indirect Tax & Management Consultants)