We are acting as commission agent for a foreign principal who does not have any office in India. We procure the order from India for the foreign principal. The confirmed order is forwarded to the foreign principal to enable it to ship the material to India. Billing is done by the foreign principal in favour of the Indian customer. For this transaction, we get commission in convertible foreign currency from the foreign principal. We have considered the above transaction under export of services. We are not paying any service tax on commission received. Are we correct?
CAclubindia
