Cenvat credit service tax paid on membership subscription

[NARENDRANADH K]

Pl clarify whether the comapny can take cenvat credit on service tax paid on member ship subscription paid on Cement Manufactures assocication?

[ALOK GUPTA]

It appears that you are a manufacturer. In case of a manufacturer, you have to establish the CENVATable amount used in or in relation to manufactring activity as defined input service in Cenvat Credit Rule, 2004. The member ship subscription paid on Cement Manufactures assocication does not appear to be related to manufacturing activity. Hence, the CENVAT Credit in this head does not appear to be admissible. 

AI Summary

Cenvat credit on membership subscription denied where subscription is not used in relation to manufacturing activity. Cenvat credit on service tax for a membership subscription to the Cement Manufacturers Association is not admissible because the subscription is not an input service used in or in relation to manufacturing activity as required under the Cenvat Credit Rules, 2004, and the manufacturer must establish such a direct nexus for credit to be allowed.