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Availing of Cenvat on service tax paid on commissions

1457 views 3 replies

Sadhuanj

MBA

68 Points Joined April 2007

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)

Guest

439755 Points Joined August 2012

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Dilip Darji

392 Points Joined March 2007

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.