10 August 2012
Mr.A is having permanent business establishment in Kolkata, he is earning commission in foreign currency. He provides service to Foreign clients who are having place of business outside India. Mr.A is procuring all the purchasers from India of Ferro Alloys and finally sell these goods to Foreign clients. Therefore in this case Service provider (Mr.A) is an Indian citizen who is providing service to his Foreign clients therefore service is provided outside India. Mr.A gets his commission from the Foreign clients.
Therefore in this case I want to know whether presently Service Tax is applicable or not & if it is applicable then under which category will this type of Service would fall.