TaxTMI 
TaxTMI 
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.
Cenvat Credit bank charges on Export Realization
10 Jan 2015 
8 Replies 
11949 Views Asked by
Cenvat credit on bank charges: admissibility turns on nexus with manufacture/clearance and timing relative to place of removal.
Cenvat credit on bank service tax for export realization and currency conversion hinges on whether such charges qualify as an input service used in or in relation to manufacture or clearance; proponents rely on Rule 2(l)'s inclusive list to allow credit with supporting documentation, while opponents emphasise the requisite nexus and that services rendered after the place of removal may be post export and ineligible, making refund under the export notification an alternative; address mismatches on bank advices pose practical compliance concerns. (AI Summary)
Cenvat credit on bank service tax for export realization and currency conversion hinges on whether such charges qualify as an input service used in or in relation to manufacture or clearance; proponents rely on Rule 2(l)'s inclusive list to allow credit with supporting documentation, while opponents emphasise the requisite nexus and that services rendered after the place of removal may be post export and ineligible, making refund under the export notification an alternative; address mismatches on bank advices pose practical compliance concerns. (AI Summary)