Whether Service Tax on Dir com is eligible of input ser credit?

[R MUTHURAJ]

Dear Sir / Mam,

Can any one say, whether a company pays Service tax on Directors Commission / Sitting Fees on reverse charge basis is eligible for taking the same as Input Service Credit.

If the answer is affirmative, i request you to give the justifications.

 

Regards,

R.Muthuraj

AI Summary

Input Service Credit Eligible for Service Tax on Directors' Fees under Reverse Charge Mechanism per Cenvat Credit Rules, 2004. A query was raised regarding the eligibility of claiming input service credit on service tax paid by a company on directors' commission or sitting fees under the reverse charge mechanism. The response confirmed that such service tax is eligible for input service credit. This is because directors' services, which include providing business direction, decision-making, and policy finalization, are considered input services. Eligibility is subject to compliance with the Cenvat Credit Rules, 2004.