applicability of service tax on commission received from abr
This query is : Resolved
CA. Surendra Gandhi
(Querist)
29 July 2009
Dear SHRI CA.BHARAT BHUSAN
Commission income is chargeble to Service Tax under "Business Auxiliary Services" if you are doing any work in India for which you are receiving commission then it will be Taxable services in India.
You can not also claim the benefit of Export of Services...b'coz the proceeds are not received in foreign exchange.
If the procdeeds are received in Foreign Exchange then it will lible for Service Tax or exemption.
CA. SURENDRA GANDHI
Commission income is chargeble to Service Tax under "Business Auxiliary Services" if you are doing any work in India for which you are receiving commission then it will be Taxable services in India.
You can not also claim the benefit of Export of Services...b'coz the proceeds are not received in foreign exchange.
If the procdeeds are received in Foreign Exchange then it will lible for Service Tax or exemption.
CA. SURENDRA GANDHI
CA. B.SRINIVASULU
(Expert)
29 July 2009
As far as you are concerned you need not pay out service tax because you are providing to a person outside india and amount is received in foreign exchange.
But you should also go through import of services and if that service falls under the rules import of service as a service provider you have to collect tax from your customer and pay to the government.
But you should also go through import of services and if that service falls under the rules import of service as a service provider you have to collect tax from your customer and pay to the government.
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