Exemption to assessee procured orders for foreign p

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2011 One of our client has a dealership of foreign principal regarding sanitary product where he received commission in foreign currency or Indian Rupee. Whether he can claim exemption from service tax on the basis of following judgement?

What document we have to maintain for same?

If he is receiving commission in India rupee then whether this exemption is available?

Can I get detailed study of following judgement?

Judgment:

Where the assessee procured orders for foreign principals and received
their consideration in foreign exchange, it was held that the assessee’s
services were exported since it fulfilled all the conditions, including the
condition of the service being “delivered outside India and used outside
India” since the rendering of the service was complete only when the
purchase orders canvassed by the assessee in India were received by the
foreign companies and these purchase orders were received and acted
upon by the foreign companies abroad. In other words, the benefit of the
service provided by the appellant accrued to the foreign companies outside
India and hence the service was “delivered outside India and used outside
India”. [KSH International vs. CCE 2010 (18) STR 404 (Tri-Mumbai)]

Rajesh Kumar

Rajesh Kumar (Expert)
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12 October 2011 It is export of service and no Service Tax is payable.
If you receive payments in indian rupees, there is some doubt as whether it is export of service or not- in my view it is export of service https://rajeshkumaradvocate.articlesbase.com/national-state-local-articles/what-is-export-of-service-4147308.html
However, we are waiting for authoritative pronouncement on the issue.

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