Cenvat credit of service tax on sales commission

[Vartik Choksi]

Whether the we can avail the Cenvat Credit of service tax paid on sales commission and utilize the said Cenvat Credit for the payment of duty of excise on excisable goods.

[CA UMA KOTHARI]

Yes, pl. see my articles in service tax today which you can search at www.taxmann.com.

[CA UMA KOTHARI]

see article Selling is a precondition to manufacture: CENVAT CREDIT FOR SERVICE TAX PAID ON ADVERTISEMENT AND PUBLICITY IS ALLOWALE, IF IT PROMOTES SALE AND THUS MANUFACTURE - Bombay high court By: - C.A. DEV KUMAR KOTHARI Dated: - 15-09-2009 on this website and other articles on similar subjects.

[Anish Jain]

yes you are eligible to take credit of service tax paid on commission. Further you can utilize this cenvat for pament of duty of excise becasse cenvat is covered under cenvat credit rules, 2004 and these rules are same for service tax and excise duty. there is no restriction of using this credit to pay excise duty.

AI Summary

Cenvat credit on service tax for sales commission can be used to discharge excise duty under the Cenvat framework.
Service tax paid on sales commission is creditable as Cenvat where the commission promotes sale of excisable goods; such Cenvat credit, governed by the Cenvat Credit Rules, may be utilised for payment of excise duty, there being no stated restriction on using service-tax-derived credit to discharge excise liability.