Availability of Service tax credit on Payment of service tax on Export Commission on reverse charge basis, Service Tax

[SI Group India limited]

1-We are the manufacturer exporter & wish to pay commission to overseas agents for the orders procured by them for us. Since they are NRI not having offices in India/Permanent establishment in India, we will have to pay service tax on export commission paid to them on reverse charge basis.

can we avail the service tax set off / credit on the same.

we don't want to follow Notification 18/2009 in the above matter.

 

Posts / Replies

[sv bhasker]

Sir,

You can avail the Cenvat Credit of Service Tax paid on reverse charge basis under Section 66A of FA,1994 as Rule 3 of CCR was amended suitably retrospectively from 18.4.2006 vide Finance Act, 2011 . Service Tax paid under Section 66A was made eligible for credit .

[SANJIV KOTHARI]

According to my understanding if commision is with in 10% FOB there is no requirement to pay service tax on export commission.