Availment of Cenvat Credit - Payment of ST through cenvat

[Anup Kumar Grover]

Whether Input Cenvat Credit be avaiable, where the ST is paid on commission/brokerage paid to one of the agent and in another deal on belalf of client received brokerage charges. Can ST paid be taken as credit agaisnt the service tax liability of the company

[Surender Gupta]

If there is no nexus between the output services and input services it would be difficult to avail the cenvat credit. On the other side, if there is nexus you can avail credit. Therefore, you need to verify the facts.

[Guest]

For availing CENVAT credit, one to one correlation is not necessary. However, it should be ensured that the input service in respect of which the CENVAT is availed should be in relation to provision of taxable output service.

AI Summary

Cenvat credit entitlement depends on nexus between input services and taxable output services; strict one to one correlation not required. Cenvat credit for service tax paid on commission or brokerage is permissible only where there is a nexus between the input service and the provision of taxable output services; one to one correlation is not necessary but factual verification of the connection is required before allowing credit.