22 April 2009
we are merchant exporter, exporting textile machinaries as well as yarn products. we have foreign based agents who provide us after sales services & payment collection. we paid them commission on that we are charging service tax to them. till sept 08 we charge & paid service tax on this commission amount. my query is that service tax on such commission (comm. on yarn products) is exempt from tax or not. commission paid to foreign agents for selling yarn products is exempt from service tax.
For the month of Oct – March invoices we paid commission to foreign agents in April month, so should I pay service tax on that & at what rate 12% or 10%
Only comm. on sale or purchase of agrecultural product is out of service tax. rest comm. as like in your case covered in business auxillary services. second rate of tax upto 23 feb,09 was 12% + cess applicable and their after 10%+ cess.any other query , mail me cabrijbhushan@gmail.com.
CAclubindia
