Service Tax Cr on Staff Training

[Ramesh M]

Dear Experts,

Our Management given a training to our staff through outside agency - Topic : Process flow and productivity. Agency is charged service tax, can we avail service tax credit ??

Ramesh M

[Mahir S]

Yes, service tax credit for such training pertaining to Production and Productivity can be availed.

[YAGAY andSUN]

Dear Ramesh, Coaching and Training, are specifically included in the definition of input services under Rule 2(l) of the CENVAT credit Rules, 2004, hence, you can avail the CENVAT credit on such services.RegardsYAGAYand SUN(Management, Businessand Indirect Tax Consultants)

AI Summary

CENVAT credit on training services: service tax paid for productivity training can be claimed as input credit with proper compliance. Training services on process flow and productivity supplied by an outside agency and charged with service tax fall within the definition of input services for CENVAT purposes, and the service tax paid on such coaching and training may be availed as CENVAT credit by the recipient subject to applicable compliance and documentation requirements.