TaxTMI 
TaxTMI 
Sir,
Whether we can take the credit of Service Tax paid on Man Power engaged in different Schools as scavengers as a part of CSR Activity which mandates for a company under The Companies Act 2013.
Cenvat credit of Service Tax
18 Mar 2017 
7 Replies 
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Guest 
Cenvat credit eligibility for CSR-related services denied if services are not used in or linked to manufacture or output services.
Service tax on manpower engaged for CSR/welfare activities in schools generally does not qualify for Cenvat credit because such services lack the requisite nexus to manufacture or to provision of an output service. Cenvat eligibility is confined to services used directly or indirectly in or in relation to manufacture and clearance up to removal, services used to provide an output service, and specified inclusive services; CSR/welfare activities ordinarily fall outside these permissive limbs unless a direct connection to manufacturing or output service provision is shown. (AI Summary)
Service tax on manpower engaged for CSR/welfare activities in schools generally does not qualify for Cenvat credit because such services lack the requisite nexus to manufacture or to provision of an output service. Cenvat eligibility is confined to services used directly or indirectly in or in relation to manufacture and clearance up to removal, services used to provide an output service, and specified inclusive services; CSR/welfare activities ordinarily fall outside these permissive limbs unless a direct connection to manufacturing or output service provision is shown. (AI Summary)