TaxTMI 
TaxTMI 
Sir,
Please brief about GST (2.58%) charge on foreign tour & can we awailed Cenvat credit on this ? please brief .
Sachin shah
Service tax paid on Foreign tour
30 Apr 2011 
2 Replies 
1438 Views Asked by
Cenvat credit on foreign employee travel may be disallowed if primarily personal; business trips require substantiation and proof.
The Finance Bill 2011 excludes travel benefits primarily for personal use from the definition of Input Service, rendering the personal-use portion ineligible for Cenvat Credit. Credit remains permissible only where the taxpayer can substantiate that foreign travel was connected to business promotion or other bona fide business activities, with the claimant bearing the burden of proof and documentation. (AI Summary)
The Finance Bill 2011 excludes travel benefits primarily for personal use from the definition of Input Service, rendering the personal-use portion ineligible for Cenvat Credit. Credit remains permissible only where the taxpayer can substantiate that foreign travel was connected to business promotion or other bona fide business activities, with the claimant bearing the burden of proof and documentation. (AI Summary)