TaxTMI 
TaxTMI 
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.
Credit Availiability
16 Sep 2013 
4 Replies 
1187 Views Input tax credit on advertising services can be claimed but may require proportionate allocation for machinery-related inputs.
Whether a manufacturing enterprise may claim Input Tax Credit on service tax paid for website advertising is disputed: one view permits credit but limits admissible Cenvat Credit to the proportion attributable to machinery-related inputs, while another treats advertising as fully creditable, and practical advice is to claim the full input and rely on audit scrutiny for any departmental objections. (AI Summary)
Whether a manufacturing enterprise may claim Input Tax Credit on service tax paid for website advertising is disputed: one view permits credit but limits admissible Cenvat Credit to the proportion attributable to machinery-related inputs, while another treats advertising as fully creditable, and practical advice is to claim the full input and rely on audit scrutiny for any departmental objections. (AI Summary)