Sir,
We are laying Cement Roads in nearby villages as apart of CSR activity and paying Service Tax to the contractor. Since it falls under Civil works we are not availing Cenvat credit of Service Tax paid.
Whether we can take credit irrespective of nature of work since its on account of CSR Activity or not to avail credit.
Can we categorise the expenditure as the expenditure incurred towards CSR activity and not expenditure towards laying of CC roads and avail credit.
Cenvat Credit on Service Tax for CSR Activities Debated; Consensus Says No Credit for Cement Roads in Villages A discussion on whether Cenvat credit of Service Tax can be availed for CSR activities, specifically for laying cement roads in villages. The consensus among participants is that Cenvat credit cannot be claimed as CSR activities are not related to the business of manufacture and civil construction works are excluded. One participant suggests exploring a new argument linking CSR obligations under the Companies Act to manufacturing activities to justify credit eligibility. Another participant argues that whether or not credit is availed, there is no financial impact on CSR obligations. The discussion invites further expert opinions. (AI Summary)
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