Cenvat credit on BAS paid

Save Share

This query is : Resolved

vishnukant (Querist)
Follow

03 March 2009 dear all,
if i am paying commission to foreign agent, and dipositing service tax on such amount, am i eligible for take cenvat credit on same?
if yes, kindly let me know under which sec/notification.

pl answer ASAP.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

03 March 2009 You are required to pay the service tax in cash as it is not an output service under Rule 5 of the Taxation of Service (provided from outside india and received in india) Rules, 2006.
However, if these are input services under Cenvat Credit Rules, you are eligible for cenvat credit.

vishnukant

vishnukant (Querist)
Follow

12 March 2009 hello sir,
thanks for reply...
yes we are paying this from PLA.
since i told you earlier that it's commission to foreign agent...pl let me know is it covered under input services.

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)
Follow

05 April 2009 As clarified by Rajeshji, you are made liable for the payment of Service Tax under reverse mechanism as per Taxation of Service (provided from outside india and received in india) Rules, 2006.

The Ministry has already clarified that the service tax paid in such cases would be available to the payee if that service qualifies as his input service.

You have to judge it for yourself whether the service for which you paying the commission to your overseas agent is actually an input service for you.

vishnukant

vishnukant (Querist)
Follow

14 April 2009 i am paying this commission on export sale made by me.
is it covered under input service?

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
Follow

15 April 2009 The commission paid to an overseas agent for export is exempted under not.41/2007 wef 7.12.2008 upto 10%. If more than that paid you woiuld have to poay the ST on reverse charge and then go for a refund.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now