Export agent commission

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Dear Sir,

I need to seek your advice, I do understand that this question has been asked many times and have been answered.

My question is I am running an export agent business, i have overseas clients and I help them in procuring goods from India. For which I charge them a fixed percentage commission. Commission is paid in FEx once the goods are shipped from India .I will like to know

  1. Scenario 1 – when the overseas client is paying commission directly to my bank account in FEx, do I have to raise service tax in my bill?
  2. Scenario 2- When the overseas clients makes the payment (good procured) along with the commission to the exporter. And I have to take my commission from the exporter in India in INR. Please advise
    1. Do I have to raise a service tax, while raising the bill? And do the Exporter has to deduct TDS while making the payment to me?
    2. Can I ask the exporter to provide me with FIRC, so that I can share it with the concern Tax department and advise them payment received is lue of services proved to the overseas buyer .so that I can save TDS or service tax.

Thanks

Suresh       

    

Replies (2)

I hv simmilar query hence any feedback would be helpful

 

Dear,

When you are receiving commision, you are acting as Intermediary and As per rule 9 of POP rules, 2012, the Place of provision of intermediary services is the place of service provider. Here you are the service provider and then you will have to charge service tax on the same.


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