'is an indian firm .procuring orders for a foreign company and gives list of orders to that foreign company.Further there is no dealing between 's'and the other indian firm.After recieving list that forein company deals directy with the indian company who ordered for its products. 's' recieves commission for this in US$ remitted through bank ...whether "s" is liable to pay service tax or nt..if yes why n if nt y..?
As per rule 9 of pops, whether this service is covered in the defination of intermediary services.
An Education Guide (�Guidance Note') on June 20, 2012 issued by the Central Board of Excise and Customs clarifying the meaning of intermediary states:
�Para 5.9.6 what are intermediary services?
Generally, an �intermediary� is a person who arranges or facilitates a supply of goods, or a provision of service, or both, between two persons, without material alteration or further processing . Thus, an intermediary is involved with two supplies at any one time:
++ The supply between the principal and the third party; and
++ The supply of his own service (agency service) to his principal, for which a fee or commission is usually charged.'
For the purpose of this rule, an intermediary in respect of goods (such as commission agent i.e. buying or selling agent or a stockholder) is excluded by definition.
CAclubindia
