pls advise

Internal Audit 816 views 2 replies

Abansal

Manager

121 Points Posted on 21 February 2009

my company is having a sale agent in srilanka who does sales on our behalf . he remits the entire monry recd thru sales to us in india.

he then raises the debit note to us for his commission amount.

then we remit the money to him directly in srilanka to his bank account thru TT or any other means.

now is my company liable to deposit service tax on this amount in india as my company is then importer of services

pls advise.

Replies (2)

Narendra Kumar

Chartered Accountant

77 Points Posted on 21 February 2009

Originally posted by :aashima
"	hi my company is having a sale agent in srilanka who does sales on our behalf . he remits the entire monry recd thru sales to us in india. he then raises the debit note to us for his commission amount. then we remit the money to him directly in srilanka to his bank account thru TT or any other means. now is my company liable to deposit service tax on this amount in india as my company is then importer of services pls advise.	"

Hi,

Refer to this link this might help you..

/articles/article_list_detail.asp?article_id=470&article_title=Liability%20of%20Service%20Recipient-%20An%20overview

The liability to pay service tax is reversed towards the service recipient under the reverse charge mechanism and the credit for the same can be considered.

Thanks,