Input credit of service tax paid on Telephone, Courier, freight, Construction

[Guest]

My Client an exporter is paying service tax on commission to overseas agent being a Service Receiver, and also paying service tax on rent of the factory, besides service tax on inputs like Tel. Courier, freight, Construction in factory. Can he adjust the amount(how much percentage) of service tax paid in the amount of service tax due on services received from abroad.

AI Summary

Exporter Seeks Service Tax Adjustment on Inputs; No CENVAT Credit Allowed for Imported Services per Rule Clarification. An exporter inquired about adjusting service tax paid on various inputs like telephone, courier, freight, and construction against the service tax due on commissions paid to an overseas agent. The first response clarified that service tax on input services cannot be adjusted against tax liabilities for services received from abroad, as both are considered input services. However, a refund or credit may be available under certain conditions. The second response confirmed that no CENVAT credit is permitted for service tax on imported services, meaning no adjustment can be made using other input service taxes.