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Service tax business auxiliary service in foreign currency

Queries 731 views 2 replies

Our company provides service to foreign companies to generate orders for their equipments in India, in return we receive commission in Foreign currency.

Pls clarify if service tax is applicable on this if the payment is received in foreign currency from foreign companies 

 

Thanks Regards

Uday

Replies (2)

This is export of service not liable to service tax.

Dear Mr Nair

Thanks for your very prompt response, the opinion from our CA is that this is a grey area as it it not possible to clearly demonstrate if the services are provided in India or export.

Though it is clear that we render services to the foreign as they make the payment to us. Is there any notification clarifying this esp in light of the negative list. Thanks for your help

 

Regards

Uday


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