VIPUL BUBNA (MANAGER TAXATION) (119 Points)
30 July 2009Service Tax paid on Foreign sales commission under reverse charge , whether cenvet credit is available for the same
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 01 August 2009
First of all if the exporter is paying the same it should be seen whether it exceeds the limit prescribed under Not 41/2007 [ valid upto July 2009] and later Not 17/2009. First one specified that copmmission upto 10% is exempt. Therefore no requirement if commission below that %age.
The present notification mention 1% which maybe an error.
Assuming that you have paid for the same under reverse charge since it is eligible input service the credit of the same can be availed.
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