16 November 2013
One of my clients is acting as a Buying Agent in India for a Principal based out of India. His business primarily is to help his Principal, who is outside India, to buy premium see food products from India and selling them in his own country. In return, the agent gets a commission based on a %age of value of products bought. My query is:-
1. Whether the activity carried out by the agent is a service ?
2. If yes, whether the service tax would be applicable given the fact that principal is based abroad ?
I have read somewhere that buying and selling agent's (like above) activities are out of scope of service tax.
16 November 2013
As per the Place of Provsions Rules,2012, the place of provision lies at the location of the service recepient which in this transaction is in non-taxable territory, no tax is payable.
CAclubindia
