I am a resident Indian. I am working for an European company as a Free lance procurement consultant. I receive a monthly retainer in Euros. I am working as an individual and do not have a company. The European company does not have an office in India. I do not buy anything in India but only identify the Indian manufacturer , negotiate the prices, co-ordinate shipments, check documentation etc. The ordering and payments are done directly between the European Company and the manufacturing company in India. I do not get any payment from the Indian company. I am also eligible for 2% commission as incentive for the value of goods exported from India and again paid by the European company in Euros. There is only export of goods from India. 1. Will the monthly retainer I receive in Euros come under the ambit of Service Tax 2. Will the commission I receive in US$/Euros as incentive come under the ambit of Service Tax. I would greatly appreciate it if anybody can give their expert opinion on this.
CAclubindia
