Commission Received from Foreign Client

Puneet Pachisia ( Chartered Accountant) (38 Points)

01 September 2009  

Dear Professional Friend,

One of my client is registered with Service Tax Department as Business Auxiliary Service Provider. Recently he has provised some services / assistance to a Chinese Company in getting an order from an Indian Company. The Chinese Company is paying commission to him. I would request you to please advise:-

1. Would the Service Provider (Client) be liable to raise Invoice with Service Tax or the service provided is exempt from Service Tax as it is provided to a company situated outside India.

2. What are the conditions to be followed. Do he required to receive the remittance in USD only or Remittance received in RMB (Chinese Currency) would also entitled for exemption.

3. I would request you to please advise the section or any precedent case study for better understanding.

Thank you in anticpation :-)