Credit Availiability

[BrahmaputraCrackerandPolymerLimited AGovt.OfIndiaEnterprise]

We are in project stage. The company is having a website which is used for dispaly of tender and display of other notices pertaining to the company. The website is being managed by outside agency, which is charging service tax on the bill. Whether credit is availiable on the same.

AI Summary

Government Enterprise Considers Service Tax Credit for Advertising Services; Civil Works Ineligible Under CENVAT Rules A government enterprise inquired about the availability of service tax credit for their website management, which displays tenders and notices. An expert advised that while the company can claim service tax credit for advertising expenses related to machinery, the department might object to claiming full credit, as civil works are ineligible for CENVAT. Another participant agreed with this assessment, while a third suggested that full credit might be available for advertising services, as restrictions apply only to construction and works contracts. It was recommended to claim the entire input on advertising expenses and let the department decide during audits.