service tax on commission received from abroad

This query is : Resolved

venugopal (Querist)
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04 June 2009 sir

please make me conform on applicability of service tax on commssion received from abroad.
our clint in india shown custmars (abroad) to another person (abroad) on which we received payment from abroad(commission)for last Fy 2008-09

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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05 June 2009 not liable since it is an export of service and meets the critereon set out of recepient outside India, reciept in CFE and usage outside India.

BALU V

BALU V (Expert)
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06 June 2009 Pl. furnish the details of category of service. Whether they have any office in India and the amount was received in CFE. I think the view expressed has to be modified accordingly

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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07 June 2009 If office were iN India which is not likely in the type of service asked then an addtional criterion would be applicable as Mr. Balu states.

The services decribed fall clearly into marketing which are normally includible in busienss auxiliary service clause 65 (19) (i) & (ii)
Consequently the rules of export are:
Receipient Outside India
Usage of service outside India
CFE receipt.

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