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 andSUN]

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

Manufacturing firm can claim CENVAT credit for interpreter services if linked to machinery installation for excisable goods. A manufacturing company inquired about the eligibility to claim CENVAT credit for interpreter services used during the installation of imported machinery. An expert advised that if the service agreement specifies the interpreter's role in overcoming language barriers for machinery installation linked to manufacturing excisable goods, CENVAT credit can be claimed. Another expert confirmed that credit is available as the interpreter's services indirectly relate to the factory's modernization. Both responses emphasize the necessity of proving the connection between the interpreter services and the manufacturing process.