Dear Sir,
our Company, manufacturing unit and doing small amount of service tax on re-work and under RCM also , has been purchasing air ticket though Travel agent for the tour of our employee and consultants as well.
Now query is that are we eligible to avail CENVAT Credit -
(a) on service tax charged in the Air ticket ;
(b) on service tax on service charges charged by Air Travel Agent.
Regards
Pradeep Jain
Manufacturing firm explores CENVAT Credit eligibility on service tax for air tickets; advised to consult tax expert. A manufacturing company inquired about the eligibility to avail CENVAT Credit on service tax charged for air tickets and service charges by a travel agent. Three responses were provided. One response affirmed eligibility based on existing case laws. Another advised establishing a clear relationship between input and output services to avoid litigation, as reliance on case laws can be uncertain. The third response suggested that if the credit amount is substantial and supported by similar case laws, it might be claimed, but warned of potential disputes with tax authorities, recommending consultation with a tax expert. (AI Summary)
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