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Cenvat under sponsorship service

Queries 939 views 4 replies

 

 

Dear Sir,
 
I want to know about some cenvat credit issue as follow, please guide me.
 
If Mr. X, a manufacturer, sponsor a event then service tax will be paid by Mr. X 100%,under reverse charge then can he take that service tax credit against excise on manufacturing.
 
If there is any law governing behind it then please let me about it.
 
Thanking you. 

 

Replies (4)
Mr. X can take service tax credit in payment of Excise Duty, the sponsorship service is a input service of Mr. X, you can see Rule 2(I) of CCR, 2004

Sponsorship shouldbe eligible for credit.

Just to add, here the service tax is to be paid in cash first by receiver under RCM and then credit can be availed.

credit can be taken. however, if any exempted goods are manufactured , such amount so much as it related to the exempted goods have to be forgone.


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