Cenvat Credit bank charges on Export Realization

[Ashwani Rustagi]

Can we take Cenvat Credit of service tax charged by bank on its charges on export realization and conversion of foreign currencies in INR. Viewers point solicited.

AI Summary

Debate on Cenvat Credit eligibility for bank service tax on export realization under Rule 2(l) of CENVAT Credit Rules, 2004. A discussion on a forum addresses whether Cenvat Credit can be claimed on service tax charged by banks for export realization and currency conversion. Various contributors provide differing opinions. Some argue that such charges are linked to business activities and thus eligible for credit under Rule 2(l) of the CENVAT Credit Rules, 2004, which defines 'input services.' Others contend these services occur post-export and are not directly related to manufacturing, hence not eligible for credit. The discussion highlights the need for clarification from authorities and considers documentation issues related to the address on bank advice.