Service tax on feasibility study report by a foreign compnay

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..... Service tax on feasibility study report by a foreign compnay
Query (Issue) Started By: - shaji thomas Dated:- 23-4-2010 Last Reply Date:- 4-5-2010 Service Tax
Got 1 Reply
Service Tax
A ma .....

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..... nufacturer in India appoints one consulting firm to conduct the feasibility study to take over a foreign company. The firm submits the due diligence report and charges service tax in their bill. Wheth .....

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..... er the Indian company is eligible for the input service credit on the above bills raised by the consulting firm or otherwise? Reply By Surender Gupta: The Reply: There are two provisions one is for av .....

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..... ailing cenvat credit and second one is for exempted operations. As per the definition provided in rule 2(l), since the amount paid to consulting firm is for the purpose of business, you may avail the .....

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..... credit, but such credit is nowhere related to your manufacturing operations, directly related to operation that may be performed outside India, you need to reverse in by virtue of rule 6. Here, I woul .....

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..... d like to clarify that this issue is yet to be decided by by the judicial courts and therefore, not free from doubts.
Discussion Forum - Knowledge Sharing .....

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