Hello Everyone!
I need advice/suggestions from experts on service tax issues:
My Case:
I have a proprietory concern and have entered into an agreement with a European company to work as a sales agent for the company in India. The job is to market and promote the goods of the European Company in India. I get a fixed monthly pay for the services. I raise an invoice on the European company and they make a payment against it. The invocie is raised in Euros. The company makes a payment in Euros which my bank credits it to my account by converting it into INR.
The Queries:
1. Will this service qualify as an eport service to be exempted from Service tax? It fulfills the criteria that the client is outside India and I get my payment in forex.
2. I work as an agent. So the payment I receive is an commission. So will it come under service tax?
The problem is I have been charging service tax to the clients. Now if I am wrong in charging the service tax while I get the refund for the service tax filed with the government so that I return it back to my clients.
I request for your expert advice on how should I go about it.
Thanking you in advance.
Regards
Tushar
CAclubindia
