Cenvat credit of Service Tax against Bank Commission

[Samik Chaudhuri]

Can we(manufacturing unit) avail Cenvat credit of Service Tax against Bank Commission for buying the material from out side India.

[DR.MARIAPPAN GOVINDARAJAN]

If the commission is paid in India you can avail CENVAT credit.

[Mahir S]

Yes sir, you can surely avail credit for the service tax paid against bank commission for purchase of material from outside India.

[PAWAN KUMAR]

Dear Sir,

The cenvat can be claimed of service tax paid on commission charged by the Banks.

AI Summary

Cenvat credit for service tax on bank commission permitted when the commission is paid in India for import procurement. A manufacturing unit may claim Cenvat credit of service tax charged by banks on commission for procurement of materials from abroad, provided the commission is paid in India; the forum contributors uniformly advised credit eligibility based on the payment location.