Retainership fees or Commission paid to Foreign Company

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This query is : Resolved

gajveer singh jhala (Querist)

13 May 2009 if we paid commission or retainer fees to Foreign TA/company than Are we liable to pay Service tax?

Please advice

SIDDHARTHA SANKAR ROY

SIDDHARTHA SANKAR ROY (Expert)

13 May 2009 If you are hiring legal services from some foreign attorney, then you are not liable to pay service tax as legal service is not covered under service tax.

Please specify the exact nature of the services procured by you.

gajveer singh jhala

gajveer singh jhala (Querist)

14 May 2009 Dear Sir,

I am in Hotel industry & we have contract with foreign agencies to make advertisement in their country. I am getting invoice in four mode-
1. Retainer Fees
2. Consultancy Fees
3. Commission on materilazaed booking
4. Online Advertisement
Is service tax will be applicable on above services.
thanks

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

20 May 2009 Yes under 66A there seems to be a liability as consultacny ( marketing/ management) + advertisment are all in the recepient based catgeory.

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