Service Tax - Cenvat credit on service tax paid on financial & technical audit fee

[MohanLal tiwari]

Dear Experts,

We have availed cenevat crdit of Service tax charged in bills of financial audits as well as technical audit fee but during the audit, the concerned authority has raised objection on the ground that the cenevat will be available on financial audits.

Kindly advise your views quoting the relevant rules.

AI Summary

Cenvat credit on audit services requires demonstrable nexus to taxable output; absence of nexus can justify credit denial.
Cenvat credit on service tax for financial and technical audit fees requires establishing that such audit services were input services utilised in providing taxable output; without demonstrable nexus or where the services are applied to exempted outputs, the credit may be disallowed.