Taxation of Service (Foreign Expenditure)

This query is : Resolved

Chetan Tole (Querist)
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18 December 2009 Can anyone tell me is it admissible to make payment of service tax on foreign expenditures and afterwards are we entitled to take credit of that service tax amount.

As our company's Director had gone outside india for business purpose and he had hired a car there and also a telephone expenses were made.

But all these was under business purpose as business related to any work which indicated commerce and industry.

But the excise people are saying that we should not pay this amount and not are entitled to take credit agst it .
Rules 2006

Please reply at Chetan_cares4u@yahoo.co.in

Awaiting 4 ure quick reply.

SANJAY JAIN

SANJAY JAIN (Expert)
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18 December 2009 Deserves all praise for quest. Out rightly no credit is admissible.
In legal terms please note that Rule 3 of the CENVAT Credit Rules,2004 allows the credit of service tax levied under Section 66 of the Finance Act,1994. As these payments were not against levy under Section 66 of the Finance Act,1994 which applies only in India except(J&K), no credit is admissible.
For further query, feel free to write sanjayinfbd@yahoo.com (M-09350048731) or visit, HNO. 2489/8,Faridabad(Haryana)