Service tax on commission paid to non resident

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V.T.SYAMKUMAR

V.T.SYAMKUMAR (Querist)
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07 March 2012 Whether Service Tax is applicable on Commission paid to a non-resident agent?

CS, Deepak Pratap Singh

CS, Deepak Pratap Singh (Expert)
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07 March 2012 Dear friend,

The chargeability of TDS and Service Tax depends upon DTAA with that country. Please clearify whether NRI has permanent establishment in India our not. The country involved and DTAA. As per provisions of Finance Act, when an India received any service from NRI as a service receiver , He has to duduct Service Tax and pay to the government. Then in your case you have to deduct service tax.

Krishna Mohan

Krishna Mohan (Expert)
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07 March 2012 Commission paid to non-resident agent shall be taxable to Service Tax in India assuming that the services rendered by the agent are consumed india. However, the liability to pay the ST is on the service receiver and not the commission agent.As the author asked only service tax implication, TDS provisions are not discussed here.

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