Applicability of service tax on commission

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This query is : Resolved

rohit gupta (Querist)

04 March 2016 Applicability of Service Tax on Commission received from Foreign Company.
I am an agent(in India) for foreign companies where my work is to take delegates/companies from India to Events/conferences in foreign countries. And i get commission from my foreign client.
Is this commission taxable?? is service tax applicable on this commission?? If service tax is applicable than can i charge the same to my foreign client??

Regards,
Rohit

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 March 2016 Service tax applicable on this commission you have to pay it under RCM. You can claim the amount from your foreign client.

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rohit gupta

rohit gupta (Querist)

04 March 2016 Dear Seetharaman Ji,
Thank you for your reply.

so the service tax applicable would be 14.5%???

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

04 March 2016 Service Tax is applicable on your transactions since service is rendered in India. In case of services rendered to the overseas parties, the service tax is payable by the service provider under RCM. There is no exemption or abatement on the services rendered and hence the rate of service tax is 14.5% (15% from 1st June 2016). The service tax may be recovered from the foreign party.

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rohit gupta

rohit gupta (Querist)

05 March 2016 Dear Suresh ji Thank you for your reply.

What is RCM means??

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

05 March 2016 RCM means reverse charge mechanism . you being service provider no RCM applicable here you have to pay service tax as service provider. RCM applicable only to service receiver.

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