Service Tax Whether Applicable on Commission Received
This query is : Resolved
14 July 2009
I have a proprietorship wherein I represent several foreign companies. My duties include canvassing their technologies and products in India and giving them a feedback of the opportunities in the Indian market.
All orders are placed by various Indian clients directly on these foreign companies and also all payments are made directly by these Indian clients directly to the foreign companies. These foreign companies do not have anyoffice in India.
After the foreign company executes the order and receives the payment from the Indian client, we raise an invoice on the foreign company for commission which is a percentage of the order value executed by the foreign company. We do not collect any Service Tax separately in the invoice.
The payment is received by us in convertible foreign currency through our bank.
We do not provide any technical service to the Indian clients nor any after sales service.
Are we liable to pay Service Tax?
Thankyou
All orders are placed by various Indian clients directly on these foreign companies and also all payments are made directly by these Indian clients directly to the foreign companies. These foreign companies do not have anyoffice in India.
After the foreign company executes the order and receives the payment from the Indian client, we raise an invoice on the foreign company for commission which is a percentage of the order value executed by the foreign company. We do not collect any Service Tax separately in the invoice.
The payment is received by us in convertible foreign currency through our bank.
We do not provide any technical service to the Indian clients nor any after sales service.
Are we liable to pay Service Tax?
Thankyou
15 July 2009
No, you are not liable for service tax as this qualify as export of services.
15 July 2009
Thankyou Sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- NRI starting business in India
- ITDS U/S.194T of Firm
- ADVANCE PAYMENT OF ADVOCATE
- TDS ON EMAIL DOMAIN SERVICE BILL
- Eway bill not cancelled within 24 hous what can be due
- EXPORT COMMERCIAL INVOICE HSN CODE
- Capital gain on sale and purchase of plot
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
