Dear Sir,
We have been paying Service Tax on following Legal Expeses under reverse charge the system:-
1- Reply to Show Cause Notice of Excise, Customs, Service Tax and Sales Tax ,Income Tax and Labour Law;
2- To attend personal hearing before appropriate authority of Excise, Customs, Service Tax , Sales Tax and Income Tax and CESTAT, High Cort and Labour Court etc.
3- Opinion relating to on above subject.
My query is that :-
Are we entitled to avail CENVAT Credit on the Legal Services ?
Regards
Pradeep Jain
CENVAT Credit Available for Legal Expenses: Legal Services Included as 'Input Service' Under CENVAT Credit Rules. A query was raised regarding the eligibility to avail CENVAT Credit on legal expenses incurred for services like responding to show cause notices, attending hearings, and obtaining legal opinions related to taxes and labor laws. Two responses clarified that legal services are included in the definition of 'Input Service' under the CENVAT Credit Rules. Therefore, CENVAT credit is available for legal services. The definition includes services used by output service providers or manufacturers, covering various activities related to business operations, including legal services. (AI Summary)