Commission received from foreign company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2014 our company is a MNC Company and receives commission from our Group Companies as we have a directive if a x company outside India enters any of the Terittory of the other Group Company the co has to pay comission, pls advise whether such receipt of payment are liable for service tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 September 2014 The Charging Section (section 66 B) of the Finance Act as amended in 2012 specifies that"there shall be levied a tax (hereinafter referred to as the ST) at the rate of twelve per cent on the value of all services,other than those services specified in the negative list,provided or agreed to be provided in the taxable territory by one person to another and collected in such manner as may be prescribed.”
As there is no service provided no service tax liability on this receipt.