Availment of Service Tax Credit

[SANDESH SHINDE]

Dear Sir,

We are Head office having centralised registration of a mfg co, in case of our dealers we are putting scheme in front of them that whoever who will make highest sale will be benefited for any hoilday package.So their stay in Hotels etc and service tax charged by such hotels can be available for us as a input service tax credit,IF yes please explain,please give us any reference regarding this,Thanks and Regards.

AI Summary

Debate Over Service Tax Credit Eligibility for Hotel Stays in Sales Promotion Scheme; Is CENVAT Credit Applicable? A manufacturing company's head office with centralized registration queried about the eligibility of availing service tax credit for hotel stays provided as incentives in a sales promotion scheme. One respondent argued that CENVAT credit is not applicable for personal use or travel benefits. Another suggested that if the expenses are related to sales promotion, the credit would be eligible. A third respondent supported this view, citing that sales promotion is included in the definition of Input Service. However, the initial respondent reiterated that such expenses do not qualify as they are consumed by employees.