service tax credit on travelling service or package tour

[Guest]

Dear Sir,

we are manufacturer and we have taken service of package tour. that party has charged invoice of tour packaged with service tax . sales executive visited on tour with dealers ...

so are we eligible to take credit on this service as an input service.?

is there any specify provision to take credit or not?

regards,

Manan pandya

contact:+919510018659

[YAGAY andSUN]

Dear Manan,

Please check Rule 2 (I) of CENVAT credit Rules, 2004 as amended from time to time in this regard.

If such tour falls under the category of Sales Promotion activities, then, it may be eligible as it is specifically mentioned in the definition of Input Services.

Regards

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Input service eligibility: package tour service may be creditable if it qualifies as sales promotion activity under CENVAT rules. A manufacturer may claim CENVAT credit for service tax charged on a package tour if the tour qualifies as a sales promotion activity within the statutory definition of input services; attention should be paid to the rule in the CENVAT Credit framework that identifies eligible input services, and only tours falling within that definition are creditable.