Cenvat under Sponsorship service

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..... Cenvat under Sponsorship service
Query (Issue) Started By: - jyoti kan Dated:- 6-12-2012 Last Reply Date:- 11-12-2012 Service Tax
Got 8 Replies
Service Tax
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 cred .....

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..... it against excise on manufacturing. Thanking you. Reply By Pradeep Khatri: The Reply: If such sponsorship service amounts to sales promotions activity, advertisement then you may avail the CENVAT credit. Reply By CA Seetharaman K C: The Reply: The credit can be taken only after the service tax payment has been made on the basis of the challan making the payment Reply By JAMES PG: The Reply: .....

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..... For taking credit based on the reverse charge mechanism, payment of both value of service as well as the Service Tax is a pre-condition Reply By jyoti kan: The Reply: How for a manufacturer a sponsorship service will be a input service ? Reply By JAMES PG: The Reply: Input service is defined in CCR as any service used by a manufacturer whether directly or indirectly in or in relation to the .....

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..... manufacture of final products and clearance of final products upto the place of removal and includes services like advertisement or sales promotion, market research etc . Without advertisement it is difficult to market a product and sponsorship is resorted to as a good means for advertisement and sales promotion by most manufacturers. Pl refer to Circular No 334/1/2010-TRU dated 26.2.10 wherein it .....

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..... is clarified that sponsorship is form of advertisement Reply By Pradeep Khatri: The Reply: Nice reply by 'James Sir'. Reply By jyoti kan: The Reply: Thank u sir....... Reply By Rajagopalan Ranganathan: The Reply: Sir, If the sponseship of event is for promoting sales of the goods manufactured by the manufacturer, then he can take credit of service tax paid on such sponseship. R. Ranganat .....

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..... han
Discussion Forum - Knowledge Sharing .....

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