Credit of Services Tax collected on consultancy

[CASUNIL BHANSALI]

Facts of the Case A Corporate body, having its main activities of dealing in share and securities, Investment and Consultancy in Capital Market & Finance. The Company is paying services Tax changed by the broker on dealing in share and securities. The company is charging and collecting services Tax on Consultancy in capital market & financial activities. Query : Whether the company can take the credit of Services Tax collected on consultancy.

AI Summary

Corporate Entity Questions Cenvat Credit Eligibility for Service Tax on Consultancy Services; Considers Rule 3 and Rule 6(3A). A corporate entity engaged in share and securities trading, investment, and consultancy in the capital market is querying whether it can claim credit for service tax collected on consultancy services. One response suggests that while input services broadly related to business are eligible for Cenvat credit, the tax paid to brokers might not qualify as it does not directly support consultancy services. Another response cites Rule 3 of the CENVAT Credit Rules, 2004, arguing that service tax on output services can be credited, suggesting a potential claim for the tax paid. A third response advises consulting Rule 6(3A) of the Cenvat Credit Rules, 2004.