Availment of Service Tax credit in respect of CSR activities, Service Tax

[SANDESH SHINDE]

Dear Sir,

Please advise on the following, we are incuring some expenses on account of CSR(Corporate Social Responsibility) activities on which it has to pay Service tax for some of the services provided.

Can we take Credit of the Service tax paid ,thanks and regards.

Posts / Replies

[Akash Deep]

Yes, you cant take credit as CSR activities are statutory obligations under section 135 of the Companies Act.

[Ganeshan Kalyani]

Service tax credit is eligible.

[POLYPLEX CORPORATION LTD.]

Whether we can take credit on News Paper Advertisement & TV advertisement in respect of 1congratulations wishes on national holiday i.e. Independence, Diwali, Holi, Republic day.

[MARIAPPAN GOVINDARAJAN]

Dear Shri Sandesh Shinde you are not eligible for taking credit for the CSR activity since the same is not belonging to the activities relating to manufacture. If CSR is made mandatory it may be possible. But not it is only voluntary.

[MARIAPPAN GOVINDARAJAN]

To Polytex Corporation Limited - you cannot take credit.

[Ganeshan Kalyani]

The direct nexus is not there in case of CSR. So the eligibility of credit is contentious.