12 July 2011
I am an agent for foreign company who is a breeder for Floriculture. They devise new breeding technologies and we in india collect the planters and give the input. the Planters pay us commission after deducting TDS. We in turn pay 50% of the commission received to our foreign breeder.
now is this service attract Service Tax?
If so from which date and what is the rate of Service Tax?
14 July 2011
Import of technology is taxable in your hands under intellectual property service. To examine your tax liability as service provider, more factual information may be needed. If you are independently carrying on the business of supply of breeding technology to planters, it may be taxable under IPR. But mere sale of seeds may not attracts service tax. If you are canvassing customers on behalf of the foreign company, it is taxable under Business Auxiliary.In any case cenvat credit is admissible on tax paid for import of service.
14 July 2011
Thanx for ur reply sir. I would like to tell u that we are appointed as agents of foreign company and they devise the technology and give it to us. In turn we conduct a meeting with Indian planters and tell the technology. They grow and give us the commission. In turn we part 50% of it to our foreign co. should we need to collect service tax?
CAclubindia
