SERVICE TAX CREDIT ON BANK COMMISSION

[HEMANT KAPADIA]

Can we take service tax credit on bank commission charged by bank for collection of sale proceeds of export goods. This is in view of defination of input services where bank commission is not specifically mentioned nor services used in business activity is mentioned.

[SHIVKUMAR SHARMA]

Yes,You can take ITC on GST paid for Bank commission Charges.

[Ganeshan Kalyani]

Bank charges is an expense in normal course of business. As it is in course or furtherance of business the input tax credit of the tax paid on bank charges is eligible. Thanks.

[DR.MARIAPPAN GOVINDARAJAN]

You can avail input tax credit.

AI Summary

Input tax credit on bank commission: tax paid on bank charges for collecting export proceeds may be claimed as credit.
Bank commission charged for collection of export sale proceeds qualifies as an input service used in the course or furtherance of business, and tax paid on those bank charges (GST/service tax) may be claimed as input tax credit since such charges are ordinary business expenses and not specifically excluded from the input service definition.