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From where he has to collect service tax

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This query is : Resolved

YELLANKI RATHNAGIRI (Querist)
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25 October 2014 Dear all,

one "XYZ CANADA" company (other country)sell its products in online

my client gives advertisement in different websites for the above "XYZ CANADA" Company products and customers purchases the above products through my client advertisements

here product amount goes to "XYZ CANADA" company and "XYZ CANADA" company give some commission to my client for giving adds

now his commission is more than ten lakh

does he come under service tax?

if yes from where he has to collect?

because he getting commission from other country and there were no agreements/relations between my client to "XYZ CANADA" company and no relation between customer to my client

Kalam

Kalam (Expert)
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25 October 2014 Here advertisement service has been rendered by the Indian client to Foreign Client and as per Rule 3 of the place of provision rules - place of provision of this service would be Canada i.e. out of the taxable territory. Hence it does not attract service tax liability.

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