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TMI BlogCENVAT Credit on Legal servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts On of the Excisable manufacturer have paid legal service charges for Frame work of Brand Sale agreement and they have paid Service Tax under reverse charge system and allready taken CENVAT Credit for payment of Excise Duty.But Department has been objected to take CENVAT Credit on legal services. Their aragment is it is nor related to manufacturing and not eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for CENVAT credit. Kindly clarify - Reply By Rajagopalan Ranganathan - The Reply = Sir, Legal service availed by a Business in respect of any field and service tax paid on such service is available as credit under Cenvat Credit Rules, 2004 . There is no restriction in Cenvat Credit Rules, 2004 that legal services availed in respect of manufacture of excisable goods or provision of outpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t service alone are input service and service tax paid on such input service alone is eligible as credit. Moreover as per rule 2 (l) of Cenvat Credit Rules. 2004 - input service means any service, - (i) used by a provider of output service for providing an output service; or (ii) used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a 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, financin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services , inward transportation of inputs or capital goods and outward transportation upto the place of removal; The rule merely says legal service . Therefore you are eligible to avail the credit of service tax paid in respect of legal ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices availed by you. - Reply By Ganeshan Kalyani - The Reply = I agree with the views submitted by Sri Rajagopalan Sir. Service tax credit is eligible for service tax paid on legal consultancy services. The base rule is well explained by Sir. You may take the credit. Also ensure the address mentioned on the invoice. May be the rejection would be based on the address. Sometime the servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is availed by the manufacturing unit but invoice is raised in their Head Office address. If this is the case direct credit should not be taken. The credit should be distributed by the Head Office and based on that invoice credit should be taken. Anyway first check the reason for the rejection. In case any further query please come back. Thanks. - CENVAT Credit on Legal services - Query Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted By: - Binu Karuthedath Dated:- 21-3-2016 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - 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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