service tax credit on commission service received

[Asked by Guest]

We are engaged in the manufacture of submersible pump set falling under Heading No. 84137010 of the First Schedule to the Central Excise Tariff Act, 1985. this is dutiable goods

for that We are paying commission to our commission agent in helping to get enquiry from clients, participating in tender for procuring sales order.

Please advise whether Service tax paid to commission agent on above activities fall under the definition of input service as laid down in the Rule 2(1) of CENVAT credit Rule 2004,

so can we take credit of input service for above commission service from commission agent and can utilized against excise duty ?

regards,

Manan Pandya

AI Summary

Cenvat credit eligibility for commission services remains uncertain due to conflicting rulings and depends on substance and accounting treatment.
Cenvat credit for service tax on commission agent services depends on the substance of the activity and the accounting treatment; tribunal precedents favouring input service recognition have been disturbed by a contrary Gujarat High Court decision, so eligibility turns on whether payments are documented and booked as sales promotion or as commission to agents.