Commission Remitted in US Doller to foreign Agent, Service Tax

[SURYAKANT MITHBAVKAR]

We have Paid Service Tax on commission remitted to foreign Agent in US doller . Regarding taking credit if the particular Export Consignment is on FOB Basis can we take the service tax credit on Service tax paid on Commission remitted to Foreign Agent.

Posts / Replies

[Mangesh Lokre]

Notification NO 41/2007-ST, provides you the exemption or refund of service tax paid on the specified services used for export. You can either

1.     Claim for Refund of Service Tax paid subject to fulfillment of the conditions laid down under Notification No 17/2008-Service Tax dated 01.04.2008,

2.     You can avail the Cenvat Credit based on the TR-6 Challan

3.     You can avail the exemption from the payment of Service Tax as per the conditions laid down under notification No 17/2009-ST dated 07.07.2009, where you have to file the half yearly return.