Service tax on commission receipt in usd - urgent

This query is : Resolved

CMA.Baskar.V

CMA.Baskar.V (Querist)
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20 February 2012 Dear Team,

Our company receiving Commission from Singapore in USD for following Business Transaction

1. Getting Customer IT hardware requirement in india and send to Overseas dealer

2. Overseas dealer go through customer requirement, if they can supply those items, they send Proforma invoice to end customer directly with copy to us.

3. We are in touch with customer to get final purchase order on overseas dealer and the same forward to overseas

4. Once purchase order received from end customer, overseas dealer shiping goods respctive customs port of end customer and documents are send to customer.

5. Customer take necessary action to get clearnace from customs house to get material

6. once material reached at end customer place, payment will be released to overseas dealer by wire transfer/cheque in USD

7. Once payment received by overseas customer, they will release commission against transaction to us in USD

This is business module.

Please suggest me, whether service tax applicable for this commission. if not applicable, please provide service tax act background on this issue.

Thanks in advance.

Dayal

Dayal (Expert)
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21 February 2012 Service Tax - BAS - Export of Services - Marketing and Sales promotion for foreign company in India is export of services

M/s FANUC INDIA PVT LTD
Vs
CCE & ST, BANGALORE

Refer the said judgement