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TMI BlogCredit of service tax on sales commissionX X X X Extracts X X X X X X X X Extracts X X X X ..... Credit of service tax on sales commission X X X X Extracts X X X X X X X X Extracts X X X X ..... unit registered under both central excise and service tax. We have paid sales commission to a company (As per written agreement). We have taken input credit of service tax charged in the sales commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion bill raised by company. Departmetnt has written a letter to reverse the credit. Please clarify whther department is right in asking us to reverse the input credit taken by us on sales commission b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ill charged by our selling agent company. Reply By Mukesh Kumar: The Reply: The action of the department is not correct. Business promotion activities are eligible input services. Reply By G RA: The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply: COMMISSION IS PAID FOR HAVING CANVASSED THE ORDER . PURSUANT TO THE ORDER THE CLEARENCE WAS EFFECTED, HENCE IT IS AN INPUT SERVICE ELIGIBLE FOR SERVICE TAX CREDIT. THERE IS NO NEED TO REVERSE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... THE CREDIT Reply By Himanshu Negi: The Reply: If your contract with commission agent is limited to order only then you can take credit as it will qualify as input service but if your contract covers o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder and as well as collection of money than this service will not qualify as input service as collection of money is post manufacturing activity. X X X X Extracts X X X X X X X X Extracts X X X X
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