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Input credit of service tax

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(Querist)
20 May 2009 Can a manufacturing company avail credit of service tax charged by a broker/ commission agent for the business(purchases and sales) brought by him for the company?

The company argues that credit cannot be taken as the broker/ agent has gathered business for sales(post manufacturing activity).If broker charges them for purchase of raw materials(pre manufacturing activity) then they would take credit for the service tax amount charged on the brokerage.

Please clarify the issue with reference to the relevant section of the Service Tax Act.
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Madhukar N Hiregange

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Madhukar N Hiregange (Expert)
20 May 2009 The point is that unless orders are generated even production does not take place. Therefore commission paid for sales is a valid and admissible as input credit.
Further input services include thos ewhich are used for business where the concept of pre manufacturing and post manufacturing is not relevant.
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