Availment of Service Tax credit in respect of CSR activities

[Guest]

Dear Sir,

Please advise on the following, we are incuring some expenses on account of CSR(Corporate Social Responsibility) activities on which it has to pay Service tax for some of the services provided.

Can we take Credit of the Service tax paid ,thanks and regards.

[Akash Deep]

Yes, you cant take credit as CSR activities are statutory obligations under section 135 of the Companies Act.

[Ganeshan Kalyani]

Service tax credit is eligible.

[POLYPLEX CORPORATIONLTD]

Whether we can take credit on News Paper Advertisement & TV advertisement in respect of 1congratulations wishes on national holiday i.e. Independence, Diwali, Holi, Republic day.

[DR.MARIAPPAN GOVINDARAJAN]

Dear Shri Sandesh Shinde you are not eligible for taking credit for the CSR activity since the same is not belonging to the activities relating to manufacture. If CSR is made mandatory it may be possible. But not it is only voluntary.

[DR.MARIAPPAN GOVINDARAJAN]

To Polytex Corporation Limited - you cannot take credit.

[Ganeshan Kalyani]

The direct nexus is not there in case of CSR. So the eligibility of credit is contentious.

AI Summary

Service tax credit eligibility for CSR expenses remains contested, hinging on nexus with taxable business activities. Whether service tax input credit may be availed for Corporate Social Responsibility expenses is contested; contributors note conflicting views where CSR is characterised as a statutory or non business obligation under the Companies Act and therefore lacking the required nexus to taxable outputs, while others assert credit eligibility; advertising for CSR purposes (e.g., holiday congratulations) is specifically raised as a practical query hinging on nexus and the nature of the activity.