Whether Service Tax on Dir com is eligible of input ser credit?, Service Tax

[Muthuraj MUTHURAJ]

Dear Sir / Mam,

Can any one say, whether a company pays Service tax on Directors Commission / Sitting Fees on reverse charge basis is eligible for taking the same as Input Service Credit.

If the answer is affirmative, i request you to give the justifications.

 

Regards,

R.Muthuraj

Posts / Replies

[Pradeep Khatri]

Yes, it is. 

Since, directors provide directions to the business, take decisions, finalise strategy, polices, goverence, hence,Services rendered by the directors to the company should be considered as input services and Service Tax paid by the company should be eligible for Cenvat credit subject to Cenvat Credit Rule, 2004.