A Indian Private Limited Company is getting agency commission for the sale of goods of that company in India. The foreign company does not have any branch in India.
My question is 1. Is this commission received by Indian Company covered under service tax?
If yes, 2. Under which head, this service will come?
3. What service tax rate need to be charged by the company?
4. Are there any abatement, relaxation or exemption regarding this service.
08 October 2015
1 Yes it is covered under service tax. 2 It will come under agency services. 3 14% service tax to be charged on the company. 4 No abatement, exemption only in case of small service provider(less than 10 lacs).
CAclubindia
