Cenvat credit availability on Currency exchanged

[kamal chordia]

Dear Sir

We are manufacturer exporter, as per notification no 26/2011 Service Tax dt 31.03.2011 our bank charged service tax on currency exchanged (export reliasation)

Please inform that service tax charged in the bank advice is cenvatable or not.

Thanks & regards

Kamal

AI Summary

Cenvat Credit Eligibility for Service Tax on Bank Charges in Export Transactions Debated; Legal Precedents Cited A manufacturer-exporter inquired about the eligibility of Cenvat credit on service tax charged by a bank for currency exchange related to export realization. One respondent argued that such service tax is a post-export activity and not eligible for credit, as only taxes on input services for export can be credited. Another respondent countered that Cenvat credit is admissible for manufacturers-exporters on service tax paid, as it relates to the manufacture and clearance of dutiable goods. Additional responses cited legal precedents supporting the eligibility of Cenvat credit for bank commission charges related to export transactions.