Cenvat Credit of Service Tax paid on Director sitting Fees

[Kamal Jhanwar]

Can we avail the cenvat credit of service tax paid on director sitting fees? Pls discuss the relevant provision.

AI Summary

Can Cenvat Credit Be Claimed on Director Sitting Fees Under RCM? Debate on Cenvat Credit Rules, 2004. A discussion on whether Cenvat credit can be availed for service tax paid on director sitting fees under the Reverse Charge Mechanism (RCM) highlights differing interpretations of the Cenvat Credit Rules, 2004. One view suggests that the fees qualify as input services related to business development, thus eligible for credit. However, an amendment in 2011 narrowed the definition of input services, excluding general business-related activities, potentially disqualifying such credits unless the director's activities directly relate to specific eligible services like sales promotion. The eligibility largely depends on the specific agreement between the company and the director.