Service Tax Credit on Sales Commission to manufacturer

First of all if the exporter is paying the same it should be seen whether it exceeds the limit prescribed under Not 41/2007 [ valid upto July 2009] and later Not 17/2009. First one specified that copmmission upto 10% is exempt. Therefore no requirement if commission below that %age.

The present notification mention 1% which maybe an error.

Assuming that you have paid for the same under reverse charge since it is eligible input service the credit of the same can be availed.