COMMISSION ON SALES

[SNEHAL SHAH]

Sir,

We can sale 45% of sales through various agent and paid commission to him , on this we can paid service tax also , can we take cenvat credit on this service tax payement ?

 

Thanks ,

Sachin

[YAGAY and SUN]

Eligible as relating to ‘sales promotion’.

[NEERAJ KUMAR, RANCHI]

yes, you can.

 

[Snehal Kulkarni]

 

 

You can avail the Cenvat Credit, without doubt.

In case of ST paid on commission paid to Foreign Commission Agent, you may Opt to Refund of Service Tax ( Notn 17/2009-ST ) or you may opt Exemption from payment of Service Tax ( Notn 18/-2009-ST)

Thanks

 

AI Summary

Cenvat credit on service tax: commissions for sales promotion qualify as input services; refund or exemption options exist for foreign agents.
Service tax paid on commissions to sales agents for sales-promotion services is an input service and Cenvat credit is available; for commissions to foreign commission agents, the taxpayer may either claim refund of the service tax under the applicable refund notification or avail exemption under the relevant exemption notification.