An Indian exporter send his merchandice to a foreign importer.For having dealt this trade an Indian company gets the commission from the foreign importer as and when the consignments are shipped.
1)Does this commission come under service tax?
2)Do you think FEMA stepps in here.If so which authority the agent has to register himself with
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FEMA
Replies (2)
yes this service is not taxable under business auxiliary service provided the export rules are complied withsuch as:'
(1) service are provide from india and utilised autside india
(2) amount received under foreign exchange
(3) recipent of service located outside india
in your case you are comply all the condition, if rececive the commission in foreign exchange,so the service are taken as export of service, NO service Tax required.
no registration required under FEMA
dear sir
yaman shenoy ji
if you have obtained srevices tax registration number . you can avaling the examption this services (business auxiliary service ) under services tax notifaction no :- 18/2009
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