credit of management consultancy service

[manish kumar]

Sir,

An Assessee has taken service tax credit of management consultancy service . Management consultanct service has provided by his sister concern. Can we allow such Cenvat credit ? Please explain in details.

Thanks

[Nash Industries I Pvt Ltd]

Yes, if tax is paid.

Regards

S.Ramaswamy

[KASTURI SETHI]

Pre-GST era

The following are parameters to avail and utilize Cenvat Credit of Service Tax paid on input service:-

(i) Service must qualify as input service as per definition under Rule 2(I) of Credit Rules,2004.

(ii) Service Tax must be paid.

(iii) Service Tax must be utilised in providing taxable output service.

The factor of 'sister concern' is not a bar to availment of Service Tax Credit.

Case law is here.

2016 (43) S.T.R. 313 (Tri. - Hyd.) =  2015 (12) TMI 1558 - CESTAT HYDERABAD AMARA RAJA POWER SYSTEMS LTD. Versus COMMR. OF CUS. & C. EX., TIRUPATHI

[Ganeshan Kalyani]

I full agree with both the experts. Cenvat credit is allowed on the invoice raised by sister concern.

[DR.MARIAPPAN GOVINDARAJAN]

Yes it is allowed.

AI Summary

Cenvat credit: management consultancy from a sister concern qualifies if input service conditions are met and tax was paid.
Cenvat credit for management consultancy provided by a sister concern is allowable provided the service qualifies as an input service, service tax has been paid, and the credit is utilised for taxable output services; the sister concern relationship does not preclude claim, supported by tribunal authority and invoice documentation.