Service tax on commisssion on export sale

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Avinav Gaurav (Querist)
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13 September 2016 Dear Sir,

We have a commission agent for selling goods out side India in Egypt,Hence we receive the service in Uttrakhand, So my query is this, That is this service is taxable if yes than plz define me the rate and in which taxable service it fall for accounting.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 September 2016 No service tax payable if the agent resides outside India.

Avinav Gaurav

Avinav Gaurav (Querist)
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13 September 2016 Dear Sir,,

Last Nov. 15 we had a Service tax audit in which the Auditor find the ledger of Commission on Export sale on which we did not pay service tax, But he said that this is a taxable service and told us to deposit the S tax with full rate 14.00% with interest and penalty under Business Auxiliary Service so nov 16 to till date we are depositing the S tax if we have paid any commission on export sale. Plz Sir clear the matter whether did we pay wrongly or we should pay on this.

Avinav Gaurav

Avinav Gaurav (Querist)
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13 September 2016 Also Service receiver is an Indian company and service provider is an Egyptian

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 September 2016 As service provider is Egyptian, no service tax payable on such intermediary service. You paid service tax wrongly. Claim refund on service tax paid wrongly including the interest and penalty.
Audit has given you wrong advice.

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Avinav Gaurav

Avinav Gaurav (Querist)
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13 September 2016 Thanks Sir....

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