Export of services ( manpower service & getting commission )

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2015 Dear Sir/Madam,

Kindly clarify 2 thing,

1) when we are getting the commissions from outside India it will be exempt or not ?

2) when we are providing the manpower services (out side India) directly or indirectly it will be exempt or not?

2015 budget changes in service tax:

Existing exemption, vide notification No. 42/12-ST dated 29.6.2012, to the service provided by a commission agent located outside India to an exporter located in India is being rescinded with immediate effect. This exemption has become redundant in view of the amendments made in law in the previous budget, in the definition of “intermediary” in the Place of Provision of Services Rules, making the place of provision of a service provided by such agents as outside the taxable territory.

Nilesh

Nilesh (Expert)

11 March 2015 If you are getting commission from outside India, you will covered under intermediary services and hence would be liable to pay service tax

Manpower services typically qualify as export - subject to Rule 6A of the service tax Rules.

Nilesh

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