Dear Sir, We are giving commission on our sales amount and receiving the bill of service tax by commission receiver so please tell us that Can we claim service tax against our manufacturing ret

[SUNIL & KALPANA SINGH TOMAR]

Dear Sir,

We are giving commission on our sales and receiving the bill of service tax by commission receiver ( which is mediater) so please tell us that Can we claim service tax against our manufacturing  return ER-1 with which notification number. 

We are waiting for your reply.

 

Thanks 

Kalpana Singh

 

[JAMES PG]

Cenvat credit of ST paid on sales commission is eligible under CCR since sales promotion is specifically included in the definition of input service. CBEC vide Circular No 943/04/2011-CX, dated April 29, 2011 also has clarified this. Availment of Cenvat credit and details like op balance, utilisation , cl balance etc are to be shown against Sl No 5 in ER-1 Return and not against any Notn No.

AI Summary

Cenvat Credit Allowed for Service Tax on Sales Commission Under Cenvat Credit Rules; Report in ER-1, Sl No 5. A query was raised regarding the eligibility to claim service tax on commissions paid for sales against the manufacturing return ER-1. The response clarified that Cenvat credit for service tax paid on sales commission is permissible under the Cenvat Credit Rules (CCR) as sales promotion is included in the definition of input service. This was supported by a CBEC circular from April 29, 2011. The Cenvat credit details should be reported under Sl No 5 in the ER-1 Return, not under any specific notification number.