Hi,
We are a Company which is promoting a product from a company outside India, we do the the Sales and Marketing activities for that Comapany in India. Once there is a Sale of the product happens in India, we get the Sales Commission from the foreign supplier of the Product in fully convertible FE. Will this inward remittance incur Service Tax? Please clarify..
Regards,
Syed
services are provided in india by indian service provider, hence taxable
Yes. It is to considered as export of service as the service receiver is outside India and payment of such service is received in convertible foreign exchange. Service Tax is payable on such transactions and service provider can take the rebate of service tax paid on input servoces.
CAclubindia
