Cenvat credit on foreign commission

[saket s]

We are paying service tax on foreign commission because it is an intermediary services and not taking input service tax credit, I understand vide Notification NO. 02/2016-CE (NT), DT. 03/02/2016 cenvat credit can be taken on such commission. Please clarify.

Thanks

AI Summary

Eligibility for Cenvat Credit on Service Tax for Intermediary Services Under Notification No. 02/2016-CE (NT) Questioned A discussion on a forum centers around the eligibility for Cenvat credit on service tax paid for intermediary services related to foreign commissions. The initial query questions whether credit can be availed under Notification No. 02/2016-CE (NT). Responses highlight that intermediary services, where the service provider is in India, do not qualify as export services under Rule 6A of Service Tax Rules, 1994, due to the location of service provision. Consequently, service tax is applicable, and credit is not typically available. The discussion acknowledges the potential for litigation and the need for clarity on the issue.