Service tax credit on Bank Charges

[Swapneswar muduli]

Dear Sir,

When we payment made for import by bank. Bank charge to us commission for this bank issue a Debit Advice for import advance remittance and charge Service tax in this advice, Second this this advice is in the Name of H.O but import payment made for Plant and material also received in plant and accounting made in plant. So is this eligible for input Service credit in plant or not ?

Regards

Swapneswar

AI Summary

Input Service Tax Credit on Bank Charges: HO Can Distribute to Plant Under Rule 7, Cenvat Credit Rules 2004 A query was raised regarding the eligibility of input service tax credit on bank charges incurred for import payments, where the bank issues a debit advice in the name of the head office (HO), but the import payment and material receipt occur at a plant. Respondents advised that the service tax credit can be distributed by the HO to the plant under Rule 7 of the Cenvat Credit Rules, 2004, provided the HO is registered as an input service distributor. All respondents concurred with this interpretation.