Interpreter service

[yateen vyas]

Dear Experts,

we have taken a Chinese interpreter service from a company in relation to our machine installation,so my question is that as we are a manufacturing company can we are eligible to avail Cenvat credit on this interpreter service.

Rgds

Yateen vyas

[YAGAY and SUN]

Dear Yateen,The contract/agreement/Service agreement should specifically mentions that you are availing such services for the purpose of removing the language bar for the purpose of installation of imported machinery which in turn would be used in manufacturing of excisable finished goods. In our opinion since such services are in or in relation to installation of a machinery which is synced to manufacturing, therefore, you can avail the CENVAT credit on the services provided by the interpreter as without such services machinery may not be installed as need. To audit parties, you should be able to prove the nexus between the services received and manufacturing of finished goods.RegardsYAGAYand SUN(Managementand Indirect Tax Consultants)

[Akash Deep]

Dear Yateen

Credit is available on interpretor's services and there in-directly in relation to modernisation of the factory.

AI Summary

CENVAT credit eligibility for interpreter services hinges on proven nexus with equipment installation and manufacturing use.
Availability of CENVAT credit on interpreter services depends on a demonstrable nexus to installation of machinery used in manufacturing. The service agreement should expressly state the interpreting was procured to remove language barriers for installation of imported machinery to be used in production. Taxpayers must retain contractual and operational evidence to substantiate that the services were in relation to installation or modernization of factory operations so that credit can be lawfully claimed and sustained on audit.