TMI BlogCenvat Credit of Service Tax paid on Director sitting FeesX X X X Extracts X X X X X X X X Extracts X X X X ..... Can we avail the cenvat credit of service tax paid on director sitting fees? Pls discuss the relevant provision. - Reply By Rajagopalan Ranganathan - The Reply = Sir, In respect of sitting fees paid to Director service tax is payable by the company under Reverse Charge mechanism (RCM). Therefore it is an input service in connection with development of company's business and hence the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible as credit under Cenvat Credit Rules, 2004 . - Reply By Kamal Jhanwar - The Reply = Sir, I wish to submit that vide Notification No. 3/2011 Central Exicse (N.T.) dated 01.03.2011 as applicable w.e.f. 01.04.2011 , the definition of Input Service under CCR, 2004 has been amended. Prior to this notification, Includes part of definition talks about the Activities relating to Bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness SUCH AS accounting, auditing, ........ . On the basis of this definition, service provider used to take the cenvat of all the services which were connected to the development of the business. However after amendment as mentioned above, you will appreciate that Activities Related to business has been deleted from includes part of definition. Therefore, definition of Input Service becomes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very specific with a limited scope. In view of the above, It is not possible for assesse to avail the cenvat credit of those services which are related to business and service tax paid on director sitting fees under Reverse Charge Mechanism also. - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per the amendment carried out by Notification No. 3/2011-CE (NT) dated 1.3.2011 (w.e.f. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.4.2011) 'input service' means any service, - (i) used by a provider of taxable service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products up to the place of removal, and includes services used in relation to modernisation, renovation or repairs of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion , market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inward transportation of inputs or capital goods and outward transportation upto the place of removal. If the fees paid to the Director for sales promotion activities and service tax is paid by the company on RCM then the same is eligible to be availed as credit. This is my opinion. Of course the agreement between the company and the director will determine the eligibility of credit of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid. - Reply By Ganeshan Kalyani - The Reply = Cenvat Credit in respect of service tax paid for Director service under reverse charge is eligible. - Reply By sudhansu nayak - The Reply = Sir, Cenvat credit on director sitting fees would basically depends on the agreement between company concerned director, if the agreement have direct nexus with the activities like sales promotion a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd other (Within inclusive part of the input service definition), Then it is eligible otherwise not. - Cenvat Credit of Service Tax paid on Director sitting Fees - Query Started By: - Kamal Jhanwar Dated:- 25-9-2015 Service Tax - Got 5 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t - 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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