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

[Asked by 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

Import of services: service tax on foreign agents must be paid first; CENVAT credit or refund may follow.
Service tax on commission to an overseas agent is an input service; CENVAT credit for taxes paid on input services can only be used against output service tax or excise duty on final products. Therefore, tax paid on domestic inputs cannot be adjusted to meet the service tax liability on imported services, which must be paid by the service recipient; where such credit cannot be applied against output liabilities, refund or rebate may be claimed subject to conditions.