Kindly Advise.
One of my client in india receives commission from an Italian Company for the sales he does in India i.e. he sells construction equipment of the Italian company in India and in turn receives commission in euros from the Italian Company.
I wanted to know, will service tax be applicable on the commission he earns as per rule 9 of place of provision of service rules 2012 .
Thanks & Regards
Rule 9 specifically excludes the Intermediary in respect of goods(commission agents). As per my opinion services provided by your client is not falling under any of the Rule 4 to Rule 12, therefore as per the rule 3 POPOS is location of the service receiver & therefore services of your client to Italian company is a Export of Service as per the Rule 6A(1) of STR 1994.
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