Cenvat under sponsorship service

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61 Points Joined May 2012

 

 

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. 

 

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On 06 December 2012 at 13:58 Report
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CA FINAL Student
429 Points Joined July 2011
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
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On 06 December 2012 at 15:14
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Chartered Accountant
39039 Points Joined September 2008

Sponsorship shouldbe eligible for credit.

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On 06 December 2012 at 17:03
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CA in service & CS. dipmaj@
3488 Points Joined June 2011

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

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On 06 December 2012 at 17:51
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Assistant Manager
76 Points Joined May 2009

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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On 08 December 2012 at 22:31


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