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Cenvat credit of service tax on commission on sale of goods

Chirag Mehta (Chartered Accountants) (33 Points)

09 December 2007

Hi all

please tell me whether CENVAT Credit can be availed on the service tax paid to agent on the commission on sale of finished goods.

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6 Replies

Satya Narain Gupta (CA final student) (496 Points)
Replied 09 December 2007

Yes, service tax paid on services used to sale the product can be taken as credit.

(Guest)

We are manufacturer of Pharmaceuticals Product. We are doing Stock transfer to Consignment Agent. We are paying commission on sale and service tax through credit note to Consignment Agent and then Consignment agent paid service tax through GAR-7 (TR6). In this case we avail the service tax credit. If this practise is not correct. please brief us for correct practise.

(Guest)

Yes. As it is in relation to business, credit may be availed.

(Guest)

You should take Invoice from Consignment agent having all particulars as prescribed particularly his Service Tax Registration numberand taken Cenvat of service tax ,after making payment.

shyam kishor porwal (Chartered Accountant) (183 Points)
Replied 26 December 2007

Yes, u can take the cenvat credit of service tax paid.

(Guest)

Originally posted by :Guest
"	We are manufacturer of Pharmaceuticals Product. We are doing Stock transfer to Consignment Agent. We are paying commission on sale and service tax through credit note to Consignment Agent and then Consignment agent paid service tax through GAR-7 (TR6). In this case we avail the service tax credit. If this practise is not correct. please brief us for correct practise.	"