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foreign commission recd.

05 October 2007

commission recd. in foreign currency from principal having no office at india for direct selling goods on l.c tocompany directly.we only refer our principal name and product dealing.can commission recd. by us is liable to service tax

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5 Replies

Taxgurukul (22 Points)
Replied 06 October 2007

one of my client developing website outside india,he has to send remitance to said co.my querry is 1.how he send remitance 2.is tds applicable at what rate3.whether s.tax applicablea as import of service

(Guest)

Service Tax is levied upon the services rendered in India. The question is whether the benefits of the services rendered are availed in India. Here the services are rendered partially in India and delivery of the service is Outside India. Also the service provider receives the charges from outside India which means any service wich is delivered outside is with in the ambit of export of services which is exempted from payment from Service Tax. The question of Tax deduction arises if and only if the payment is made in India.

(Guest)

We promote business of a foreign co. in india. The customers in India directly place the order on the foreign company and import the goods directly by remittance through L/C or TT. We get the difference in the foreign co's list price and the order value back by TT. My query is whether we are a) liable to pay service tax on the amount thus recd. b) If so do we have to charge the same from that foreign co. India has Double Taxation Avoidance Treaty with their country.

Thanks & Regards

RAJESH MALHOTRA (CHARTERED ACCOUNTANT ) (21 Points)
Replied 19 August 2008

Originally posted by :Taxgurukul
"	commission recd. in foreign currency from principal having no office at india for direct selling goods on l.c tocompany directly.we only refer our principal name and product dealing.can commission recd. by us is liable to service tax	"

1 Like

narinder (C.A.) (38 Points)
Replied 01 November 2008

if we receive comm on the sales from a co in china and they send payment after withholding tax , can i take the benefit of thiswithhoding tax in my taxation