Cenvat Credit on Sales Commission Agent

[P Ovhal]

Dear Expert,

We are an manufacturer & Exporter of Ex'bl. goods. can we avail credit on Sales Commission paid to the foreign agent towards sales order processing by him.

Please suggest

[YAGAY and SUN]

Dear P Oval

It would be better if you seek refund of the same.

Regards

TeamYAGAY & SUN

(Management & Indirect Tax Consultants)

[Madhukar N Hiregange]

For exporters of goods there is an exemption upto 10 percent of FOB value. It maybe advisable to claim that. If more then under RC you need to pay and then go for the refund.

AI Summary

Cenvat credit on sales commission: claim export exemption or seek refund; pay under reverse charge if exemption insufficient. Question concerns availability of Cenvat credit on sales commission paid to a foreign agent for processing export sales orders. Advisers recommend seeking a refund or claiming the export exemption measured against FOB value, and if the exemption is insufficient, to discharge the liability under RC and then pursue a refund.