Article- Cenvat credit on sales commission

[Vartik Choksi]

I don' find any article on the taxmann.com. Please let me know whether I can take CENAT Credit of the sales commission. Further Please let me know if there are any decisions in our favour.

[CA UMA KOTHARI]

see the right side of this page, - article's catagory Click link Cenvat credit- you will find several articles on CENVAT, that will probably help n your case.

[Anish Jain]

yes you are eligible to take credit of service tax paid on commission paid to sales man. in case of bhillai auxiliary industries cited as 2007(7)STR 82. in this case it has been held that "Sales promotino is coered under definition of input service - commission agent helps in procuring orders - impugned service rendered for sale promotion and are input service - credit of service tax admissible"

AI Summary

Cenvat credit: service tax on sales commission is claimable when commission is an input service facilitating sales. Cenvat credit for service tax on sales commission is claimable because commission paid to agents for sales promotion constitutes an input service that facilitates procurement of orders, and service tax on such payments is admissible as Cenvat credit, subject to the usual claiming conditions under the Cenvat rules.