TaxTMI 
TaxTMI 
TaxTMI 
Cenvat credit of Service Tax on CSR Activities
X X X X Extracts X X X X
X X X X Extracts X X X X
....envat credit of Service Tax on CSR Activities<br> Query (Issue) Started By: - Aitha RajyaLakshmi Dated:- 18-3-2017 Last Reply Date:- 18-3-2017 Service Tax<br>Got 8 Replies<br>Service Tax<br>Sir, We are laying Cement Roads in nearby villages as apart of CSR activity and paying Service Tax to the contractor. Since it falls under Civil works we are not availing Cenvat credit of Service Tax paid. Wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ether we can take credit irrespective of nature of work since its on account of CSR Activity or not to avail credit. Can we categorise the expenditure as the expenditure incurred towards CSR activity and not expenditure towards laying of CC roads and avail credit. Reply By Himansu Sha: The Reply: No, since the activites are mostly welfare activities and not relating to business of manufacture. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Further works contracts for civil construction are excluded. Reply By Ramaswamy S: The Reply: CSR and Cenvat Credit Rules are two different aspects. Eligibility of Credit is determined under CCR. Agree with Mr Himanshu. Regards S.Ramaswamy Reply By KASTURI SETHI: The Reply: I support the views of both Experts. Reply By KASTURI SETHI: The Reply: Welcome to Sh.S.Ramaswamy Sir in this for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....um. We are relishing his knowledge. No chinks in his knowledge.Fantastic. Reply By Ramaswamy S: The Reply: thank you sir. Regards S.Ramaswamy Reply By YAGAY AND SUN: The Reply: Well, whether a different view is not be adopted since CSR activities are statutory obligation under Section 135 of the Company Act. If this statutory obligation is not fulfilled that whether there can be any impact o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n company's manufacturing activities. Also there is a need to develop a totally new contention to prove a nexus between CSR Activities and manufacturing business of a company to convince the Department to allow the CENVAT credit on CSR Activities. Experts can have discussions further on this point as brain storming will be beneficial to trade in this matter. Reply By Aitha RajyaLakshmi: The ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Reply: Thank u all. Sir, I am of the view that whether the credit of Service Tax is availed or not, there would be no financial impact. I would also like to justify my view, If no credit is taken in respect of Service Tax then it would be a cost to CSR activity thereby the CSR obligation gets reduced. If credit is availed in respect of Service tax it would be credited to Cenvat credit receiva....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ble a/c and thereby the CSR obligation does not get reduced. In both the cases there will be Cash outflow. Please correct me if I am wrong. Reply By MARIAPPAN GOVINDARAJAN: The Reply: Service tax credit on CSR activities does not arise as held by experts. But the service tax paid along with the cost of CSR would form part of the total cost is doubtful. Views of experts are solicited.<br> Discu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssion Forum - Knowledge Sharing ....