TaxTMI 
TaxTMI 
Sir,
Please let us know that " CENVAT Credit is available on Director Sitting Fee. OR are we entitled to avail CENVAT Credit on Director Sitting Fee.
Wee seek your legal opinion.
Regards
Pradeep Jain
CENVAT Credit on Director Sitting Fee.
07 Nov 2012 
10 Replies 
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Cenvat credit for director sitting fees possible if fees qualify as eligible input service and tax is paid under reverse charge.
CENVAT credit on director sitting fees is claimable if those fees qualify as an eligible input service for the company and service tax has been paid by the recipient. Under the reverse charge mechanism the company must pay tax in cash and may claim credit thereafter on the basis of challan, invoice or bill. Availability is negated where outward supplies are exempt. Classification of directors' services (personal/employee benefit, legal/consultancy, or input service) and the director's capacity are decisive for entitlement and commonly contested in audits. (AI Summary)
CENVAT credit on director sitting fees is claimable if those fees qualify as an eligible input service for the company and service tax has been paid by the recipient. Under the reverse charge mechanism the company must pay tax in cash and may claim credit thereafter on the basis of challan, invoice or bill. Availability is negated where outward supplies are exempt. Classification of directors' services (personal/employee benefit, legal/consultancy, or input service) and the director's capacity are decisive for entitlement and commonly contested in audits. (AI Summary)