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

Cenvat credit eligibility on sales commission: receiver may claim credit despite place of provision disputes and potential litigation
Intermediary commission received by an Indian agent is generally located and consumed in India under Place of Provision rules, so it does not qualify as export of service; however, an insertion in the cenvat rules now treats sales commission as sales promotion, enabling the service receiver (or a recipient liable under reverse charge whose output is dutiable) to claim cenvat credit. Entitlement depends on whether the service is used for a dutiable output, whether reverse charge applies, and facts about enjoyment and use of the service; disputes remain likely despite the amendment.