Service tax paid on Registration expenses overseas and Sales promotion Expenses.

[Sunil Jagtap]

Dear Experts,

My query relates to take credit of the service tax paid on Registration expenses overseas and Sales promotion Expenses overseas.

We are a manufacturing unit, we are paying service tax 14% on amount paid to our overseas agent for registration of new products in market and Sales promotion expenses.

Now my query is are we eligible to take credit of service tax paid.

Regards

AI Summary

Import of services: credit may be available for overseas registration and promotion services when treated as imported services.
Availability of service tax credit for payments to an overseas agent depends on whether the service is an intermediary service (place of provision at provider's location, no Indian tax payable and no credit) or an import of services (place of provision at recipient's location, Indian recipient may claim credit). Factual terms of the engagement affect characterization; taxpayers who have claimed credit may face departmental objections and may need to reverse credit or seek refund where tax was paid without authority.