sevice tax on sales commission

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rakesh sharma

rakesh sharma (Querist)

05 February 2008 Is service tax applicable on commission recd on sale of goods.

rakesh sharma

rakesh sharma (Querist)

05 February 2008 123

rakesh sharma

rakesh sharma (Querist)

05 February 2008 q

Dayal

Dayal (Expert)

06 February 2008 Yes, covered under Business Auxiliary Services.

You can check your threshold limit of 8 lacs and then proceed

https://www.caclubindia.com/homepage/DM%20Associate/

rakesh sharma

rakesh sharma (Querist)

07 February 2008 Thanx.

Can I take input credit for sales commission paid to comission agent under the following conditions.

we deal in two kinds of products

1) Manufactured by us.

2) Traded by us.

The mfg product & traded product are entirely different. Example Mfg product is auto component & traded product is
Electronic toy.I pay sales commission
to a selling agent on toys.

Can I take input credit for service tax paid on sales commission for toy(traded product) & utilize the same for payment of excise on auto component.(mfg product)

Dayal

Dayal (Expert)

08 February 2008 In such case you will have to follow rule 6 which restrict utilisation of credit of service tax to 20% of service tax payable on your output service or goods manufactured by you.

In case you do not follow the said procedure you can take full credit however you will have to pay 10% of value of exempt goods/ traded goods.

Or if you are able to maintain sepearate inventory for the services consumed against manufacture and trading then you can set off full service tax credit.

In the instance case of credit on trade product you can utilise only 20% of credit

Dayal

Dayal (Expert)

12 February 2008 If your query has been resolved kindly close the query by putting appropriate response and your comments and assing the statu RESOLVED.

Thanks

Dayal

Dayal (Expert)

12 February 2008 If your query has been resolved kindly close the query by putting appropriate response and your comments and assing the statu RESOLVED.

Thanks