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Service tax on foreign agent commission on export

This query is : Resolved 

03 December 2011 dear friends,

we are giving commission on export sale to NRI which is also mentioned in the shipping bill.

Is the service tax liability arise on such commission on us.



thanks.................

03 December 2011 Budget 2009 introduced a scheme vide Notification No.18/2009 dtd. 7.7.2009 providing for direct exemption from service tax on services provided by a foreign commission agent who causes sale of exporter’s goods abroad, service tax on which was hitherto payable by the exporter on a reverse charge mechanism.

As per the new scheme, amongst other conditions & procedures, exemption would be restricted to service tax of 1% of the FOB value of export. The service tax in excess of such limit would have to be paid as per the reverse charge mechanism. This excess would also not be entitled to refund.


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