Service tax on commission paid to foreign agents under rcm

This query is : Resolved

Dharmendra More (Querist)
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28 March 2015 Dear Experts,

We are a manufacturer. We export our material to various countries. We pay our foreign agents commission on these export orders. We declare these commission in the shipping bill while exporting our material. As per new amendments service tax on commission paid to such foreign agents have been exempted w.e.f. 01.04.15?

Kindly advice.

Please note we are not a E.O.U. unit.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 March 2015 As the services are rendered outside India no service tax payable.

Dharmendra More

Dharmendra More (Querist)
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30 March 2015
Mr. Seetharaman,

But income is earned in India. Hence, we have been paying service tax on such commission paid to foreign agents under Reverse Charge Mechanism.

Hence, kindly guide whether to pay service tax on this under RCM w.e.f.01.04.15.

Regards,

Dharmendra

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 March 2015 They are not rendering any services in India. As per place of provision of service rules no service tax payable. The income is earned out side India.