Sales Commission received in Foreign Currency
This query is : Resolved
A.M.Balakirushnan
(Querist)
28 March 2009
We are representing a USA company in India and promoting their products to India Customers,
Customers place order directly with USA company and import the goods. For our services USA company remits
Sales Commission in Foreign Currency in our Bank account. Some times their Indian Office pays the Sales Commission in INR also. Please note that the Contract /agreement we have signed for this is with directly with
with USA company only. We do not have any Contract with their Indian outfit.
Now Questions are:
a) Is the sales commissions received in US Dollar is liable for service tax.
b) Is the sales commissions received in INR from their
Indian outfit is iable for service tax.
c) Whether these amounts will be taken in for arriving the Threshold Limit of 10 Lakhs.
Customers place order directly with USA company and import the goods. For our services USA company remits
Sales Commission in Foreign Currency in our Bank account. Some times their Indian Office pays the Sales Commission in INR also. Please note that the Contract /agreement we have signed for this is with directly with
with USA company only. We do not have any Contract with their Indian outfit.
Now Questions are:
a) Is the sales commissions received in US Dollar is liable for service tax.
b) Is the sales commissions received in INR from their
Indian outfit is iable for service tax.
c) Whether these amounts will be taken in for arriving the Threshold Limit of 10 Lakhs.
Laxmi Narayana Sahu
(Expert)
28 March 2009
As Services Provided india ,service Tax is any way application in both the cases mentioned above .However ,You can take the benefit of threshhold limit of Rs.10.00 Lacs
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