service tax credit eligible on commission on sales

[manan pandya]

Res. Sir,

we are manufacturer of excisable product. we are paying commission on sales , party has charged bill of commission in which he also charges service tax amount so in this base

can we eligible to take credit of service tax on commission on sales.

pls. provide any reference.

regards,

Manan Pandya

ahmedabad

AI Summary

CENVAT Credit Not Available for Sales Commission Services per Gujarat High Court Ruling in CCE v. Cadila Healthcare A manufacturer inquired about the eligibility to claim service tax credit on sales commission, where service tax is charged on the commission bill. An initial response cited tribunal decisions, supported by a High Court ruling, that allowed such credits. However, a Gujarat High Court decision in CCE v. Cadila Healthcare ruled otherwise, stating the service of a commission agent is not eligible for Cenvat credit. The manufacturer clarified the issue was indeed about sales commission, not sales promotion. The final advice was that CENVAT credit on such services would not be available under the current legal standing.