Availment of Service Tax Credit

[Asked by Guest]

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

CENVAT credit eligibility depends on nexus to sales promotion; personal employee holiday benefits are generally excluded.
CENVAT credit eligibility for hotel stays awarded under a dealer sales-promotion scheme depends on nexus to sales promotion: if the scheme is a pre-announced part of sales-promotion and the expense qualifies as an input service, credit may be available; services consumed as personal employee benefits or travel are excluded from credit.