Service tax on commission received from overseas

Save Share

This query is : Resolved

binny (Querist)
Follow

25 September 2012 Dear Expert

Kindly advise

1) As per new rules of service tax, Is Service tax applicable on the Indian Company who is a rep. and distributor of a foreign company. Indian company gets commission in US Dollars from the foreign principal company towards marketing/promoting its products to customers in India.

2)If service tax is applicable then how would its invoice be made as commission received is in USD.

Kindly confirm on above and oblige.

Thanks and Best Regards

Binny

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

25 September 2012 Service tax will be applicable on this services because place of provision is India. Recipient of commission will raise the invoice to provider of commission.

binny

binny (Querist)
Follow

25 September 2012 Dear Sir,

Thanks for your reply. But will it not fall under Export of services and so no service tax.

However, if you think service tax is applicable, as you said invoice will be made on the name of principal company who is situted outside India. Shall we mention service tax in that Invoice. Foreign company won't give service, tax for sure. So will Indian company pay that amount?

Kindly reply and oblige

Thanks

Binny

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!