Service tax on foreign commission
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 April 2017
Hi,
One of our client is acting as a logistic partner for a foreign entity. They receive shipment of goods from foreign party and simply send the same to a buyer in india. For this service , they receive a commission for receiving and shipping goods. Invoice is named in the name of the end buyer , however our client first receives the goods , packs it and sends to the end buyer. Airway bills are in the name of our client. Please advice whether service tax would be applicable on the same?
Regards
One of our client is acting as a logistic partner for a foreign entity. They receive shipment of goods from foreign party and simply send the same to a buyer in india. For this service , they receive a commission for receiving and shipping goods. Invoice is named in the name of the end buyer , however our client first receives the goods , packs it and sends to the end buyer. Airway bills are in the name of our client. Please advice whether service tax would be applicable on the same?
Regards
18 April 2017
First of all please clarify how this transaction is being accounted for in the books of accounts. If you are only showing the commission income in your books, then this transaction is subject to service tax.
In case you are showing sale and purchase of goods then you must be charging VAT/Sales Tax. If yes, then service tax is not applicable.
In case you are showing sale and purchase of goods then you must be charging VAT/Sales Tax. If yes, then service tax is not applicable.
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