Service tax on commission received from foreign company

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Suraj Singh (Querist)
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07 October 2015 Dear Sir,

A Indian Private Limited Company is getting agency commission for the sale of goods of that company in India. The foreign company does not have any branch in India.

My question is
1. Is this commission received by Indian Company covered under service tax?

If yes,
2. Under which head, this service will come?

3. What service tax rate need to be charged by the company?

4. Are there any abatement, relaxation or exemption regarding this service.

Thanks in advance!

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 October 2015 1 Yes it is covered under service tax.
2 It will come under agency services.
3 14% service tax to be charged on the company.
4 No abatement, exemption only in case of small service provider(less than 10 lacs).

Suraj Singh

Suraj Singh (Querist)
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08 October 2015 Thanks for the reply sir,

Sir, I am not able to find the proper head under which such service has to be covered.

So, Please state me the proper head under which such service can be covered?

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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08 October 2015 Cover it under Business support service.

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