A client of mine is a commission agent of a Yarn manufacturing company. He sells yarn on behalf of the manufacurer and thereby earns commission from the manufacturer. Invoices are raised by the manufacturer directly in the name of he customers . Commission Agent charges service tax in the Commsion billls.The manufacturerer's delivery term is his ex-godown. Commisionagent is libale to deliver the Goods from the manufaturers godown to his customers place for which he pays the frieght. and the GTA charges service tax from him.
Can he claim Cenvat credit ? The amount of service tax paid to GTA be set off with that of the service tax payable in respect of Commision received.
CAclubindia
