TaxTMI 
TaxTMI 
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.
Credit of Services Tax collected on consultancy
07 Jan 2009 
3 Replies 
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Cenvat credit for input services may be claimed against service tax on output services when a clear business nexus exists.
Whether taxes on broker and consultancy services qualify as creditable input services hinges on the business nexus to the provider's output service; Cenvat credit may be utilized against service tax on output services, but departmental scrutiny may deny credit if broker services are found unrelated to the output service. (AI Summary)
Whether taxes on broker and consultancy services qualify as creditable input services hinges on the business nexus to the provider's output service; Cenvat credit may be utilized against service tax on output services, but departmental scrutiny may deny credit if broker services are found unrelated to the output service. (AI Summary)