Service tax on sales commision received from foreign

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arumugam (Querist)
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13 August 2011 I want to know the applicability of Service Tax for Commission received from foreign or parent company for sales made in india - whether chargeable to service tax or not

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 August 2011 The services decribed fall into marketing which are normally includible in busienss auxiliary service under clause 65 (19) (i) & (ii) of Finance Act,1994.
Consequently the export of service Rules,2005 have to be looked into. Accordingly if all the following conditions are satisfied exemption is available from service tax.

1)Service recipient is Outside India
2)Usage of service is outside India
3)amount is received in convertible foreign exchange and
4) recipient has no 'place of business' in India.

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