Cenvat under Sponsorship service

[Asked by Guest]

Dear Sir,

 

I want to know about some cenvat credit issue as follow, please guide me.

 

If Mr. X, a manufacturer, sponsor a event then service tax will be paid by Mr. X 100%,under reverse charge then can he take that service tax credit against excise on manufacturing.

 

Thanking you. 

AI Summary

Input service: sponsorship treated as advertisement permits CENVAT credit when service tax is paid with challan evidence.
CENVAT credit for service tax paid on event sponsorship is available where the sponsorship qualifies as an input service-specifically advertisement or sales promotion used to promote the manufacturer's goods-and where service tax has been duly paid (including under reverse charge) with supporting evidence such as the challan.