Service tax on commission in usd

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This query is : Resolved

binny (Querist)

28 July 2012 Is service tax applicable on commission earned in Foreign Exchange.This commission is from overseas principal towards marketing / promoting their business in India and orders on them from customers in India.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

30 July 2012 Not liable as the same is an export under rules 3 which specifies that as long as the recepient is outside India and amount recieved in CFE, the same is not liable

binny

binny (Querist)

31 July 2012 Dear Sir,

Thanks for your reply.

But With effect from 01.07.2012, is the situation not changed? Rule 9 of the Place of Provision of Services Rules ( Notification 28/2012 dated 20.06.2012 effective from 01.07.2012) provides that in case of Intermediary Service Provider, place of provision of services shall be location of Service Provider. What is its implication?

Will commission earned in in Foreingn exchange still be considered as Export of services and hence no service tax on it and no requirement of registeration of service tax no.

Kindly confirm on above and oblige.

Thanks and Best Regards

Binny

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