Service tax on export commission

[Guest]

service tax paid on Exports Commission under Business Auxiliary Services can availed or not?

[Mukesh Kumar]

You query is not clear. Amount received towards export of services (commission received for services rendered outside india) is exempt from service tax. On the other side, service tax on import of services (BAS) or services provided in India are taxable. Where you pay service tax on commission as import of services, the same is allowed as cenvat credit if used for eligible activities.

AI Summary

Export commission exemption: service tax not leviable on outward commission; input credit available for taxable imported BAS used. Commission received for export of services is exempt from service tax. Service tax applies to BAS provided in India or treated as import of services. Service tax paid on imported or domestic BAS can be claimed as Cenvat credit when used for eligible activities under Cenvat rules.