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Availing of Cenvat on service tax paid on commissions

Service Tax (Legacy) 1577 views 3 replies

Ours is a manufacturing industry and producing exciseble goods. The company is making the payments as commission  for availing of  services such as procuring orders and collection of payments etc., for which the agents are raising their bills towards their commission and charging  service tax.thereon.  Can the company avail the service tax paid on commission as cenvat. Can any body help on this issue.

Regards.

S Anjaneyulu

Replies (3)
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As per latest circular issued by CBEC, with effect from 10.9.2004, CENVAT Credit across goods and services has been allowed. In this regard the manner of availing credit and the procedure to be followed is prescribed in the CENVAT Credit Rules, 2004 (herein after called ‘the Credit Rules'). Accordingly you can very well avail CENVAT credit of Service Tax paid by you on Commission, as long as the said services are unsed in the manufacture of excisable goods ou taxable output serrvice.
Hi sadhunaj, definitely u can avail cenvat credit


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