service tax on commission paid to foreign agent
This query is : Resolved
26 June 2009
sir
one of my clint is having exports to different countries and they are paying commission to foreign agentfor the following expenditures.
1.Tendar expenses
2.Telephone expenses
3.Expenses on Foregin Debtors realisations
4.Travelling expensesand other
mis.expenses
5.2% commission on invoice value
Our clint is making payment approxmately 15 to 20% on invoce value to cover the above expenditure.
kindly advise us appicability of service tax on the above payment
one of my clint is having exports to different countries and they are paying commission to foreign agentfor the following expenditures.
1.Tendar expenses
2.Telephone expenses
3.Expenses on Foregin Debtors realisations
4.Travelling expensesand other
mis.expenses
5.2% commission on invoice value
Our clint is making payment approxmately 15 to 20% on invoce value to cover the above expenditure.
kindly advise us appicability of service tax on the above payment
Madhukar N Hiregange
(Expert)
29 June 2009
In my view only the amount charged for services wouldbe liable. In this case only the commission is liable under reverse charge.
It maybe advisable to keep dept infomred of the view while paying the tax.
It maybe advisable to keep dept infomred of the view while paying the tax.
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