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

Manufacturer Seeks Service Tax Credit for Sales Execs' Tour; Rule 2(I) of CENVAT Credit Rules May Apply A manufacturer inquired about the eligibility to claim service tax credit on a package tour taken for sales executives who visited dealers. The response advised checking Rule 2(I) of the CENVAT Credit Rules, 2004, which may allow such credit if the tour qualifies as a Sales Promotion activity, as specified in the definition of Input Services.