INPUT CREDIT FOR ADVERTISING AGENCY

This query is : Resolved 

28 October 2010 One of my client provides advertising agency services.
he outsources some of his advertising works to other firms.
When he pays the bills to other ad.agencies, the bill includes service tax., my client in turn charges including his margin to his own clients for the work.
regarding service tax - he claims the service tax paid to other ad.agencies as cenvat credit while paying his service tax liabilitiy. the dept, ahs rejected such claim saying tht service tax paid to other ad.agencies is not allowed as cenvat credit. please help me...with any quoted caselaw if any?

29 October 2010 Why the Dept. has rejected, always try to write complete reason, In the normal way , they cannot reject the input credit.

29 October 2010 The services used in provding the output services are to be allowed as per deifntion. Please show them the defintion. At times they are out only to establish their Nuisance value.


29 October 2010 the reason for rejection is that they claim the claim is against the definition of rule2(1)of cenvat credit rules. they say that the services provided by the other services providers to the assessee who carry on the same business i.e advertising agency cannot be termed as input services.
can you help me out with any caselaw...i have already filed a petition describing the definition and its meaning as described in coco cola case but it would help if i can quote an appropriate case before him



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