11 October 2012
We are rendering services to a Foreign company for getting Purchase order from India companies. We are not executing the order and the foreign company only takes care of the execution of the order. Our service ends with forwarding the Purchase order placed on them. For which we are getting commission as consideration. The commission is some percentage on the purchase order value and the percentage is differing for every purchase orders. We are getting the commission in foreign curreny only. Shall we liable to charge service tax for that commission amount? Please someone clarify.