Service tax applicability on commission


This query is : Resolved 

16 July 2012 Whether Service Tax applicable or not on commission Income in Indian private limited?
• FACTS:
It is Indian company and it is subsidiary company of German based company. If indian company collecting order from Indian customer and forward it to mills i.e. their( group companies) based in France & Germany respectively. When the order is executed & received payments from Indian customer,Indian company gets commission.

• Earlier years service tax is exempted because of Notifiacation No.21/2003 dated 20th Nov ,2003 under service tax.

• Now this type of services denied in circular No. 111/05/2009 dated 24th Feb,2009
Kindly provide the conclusion.

17 July 2012
Indian company is liable for service tax.

It is Business Auxiliary Service

18 July 2012 thanks sir.
please explain me along with any circular or notification reference in this regard.in 2012 there is any circular or not and it is applicable to this type of services?

24 July 2025 https://docs.google.com/document/d/18g9tVaELXJI6lI-iU5bdC12JJ0XsLnFHv5AZB9rSOAU/edit?usp=sharing


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