Service Tax on Commission received for High Sea Sales
This query is : Resolved
26 March 2009
Dear Sir,
In a case of High Sea Sales, when we receive commission from the manufacturer, whether it attracts service tax or not.
Example:
If A is a manufacturer in foreighn country, B is Indian Company which buys material from A and sold it to C, another Indian Company when the material is in transit. For that transaction if A pays commission to B, is B liable to pay Service Tax
Please clarify.
Dear Sir,
In a case of High Sea Sales, when we receive commission from the manufacturer, whether it attracts service tax or not.
Example:
If A is a manufacturer in foreighn country, B is Indian Company which buys material from A and sold it to C, another Indian Company when the material is in transit. For that transaction if A pays commission to B, is B liable to pay Service Tax
Please clarify.
26 March 2009
If Indian company B provides service to manufacturer A of foregin country by just identifying the person and B receives the commission in foreign commision and no bill has been raised on B for materials then service tax is not payable it will be in the nature of export of service and exempted accordingly.
If goods were billed on B and he transfers to C for a higher value then it becomes part of sale and sales tax provisions will apply and no service is involed here.
If Indian company B provides service to manufacturer A of foregin country by just identifying the person and B receives the commission in foreign commision and no bill has been raised on B for materials then service tax is not payable it will be in the nature of export of service and exempted accordingly.
If goods were billed on B and he transfers to C for a higher value then it becomes part of sale and sales tax provisions will apply and no service is involed here.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- Treatment of Pension ?annuity returns on PMVY
- STCG FOR GOLD ETFs
- Long Term Service award taxability in hands of company
- Free lancer income
- REGARDING GST LIABILITY/....
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
