Service Tax Liability on BAS

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Rakshit

Asst. Manager ( F & A )

25 Points Joined February 2009

An Exporter XYZ Ltd. of Agra entered into an Agreement with ABC of UK.ABC shall act as foreign Based Commission Agent for Exports to Europe & UK.Commission is payable after realisation of Export Bills.Commission payable to ABC by XYZ ltd. is mentioned in Shipping Bills .

In Nov 07 XYZ Ltd. exported a consignment to europe .Amount in Foreign Currency was realised in Feb 08.Commission was paid in Nov 08.Service Tax on BAS was paid within 5-12-08.

Was the Service Tax on BAS paid to Central Government in time or delayed ?

please advice.

Replies (5)

Madhukar N Hiregange

Chartered Accountant

39039 Points Joined September 2008

It was paid in time. For commission paid for exporting goods you may examine possible exemption under not.41/2007.

A. Kiran Kumar

Manager - Indirext Taxation

156 Points Joined November 2008

Dear Mr. Raksh*t,

Yes. As per Madhukarji the said notification will definetely help.

As per the notification 41/2007 date 06.10.2007 (as ammended) the service tax paid as BAS, which is related to export of goods can be refunded, for which you have to file refund claim within 6 months from the end of the quarter of export date. As per your details the export was made in Nov'08 and end of the quarter is December'08.

So you have only 3 days time to apply for refund as the 6 months time is going to lapse on 30.06.2009.

H RAO Tallapragada

Employee

42 Points Joined June 2007

hey

what if the case is like this:

An agent has been appointed for promoting our product and procuring orders outside india. There are no export orders during the year. He charges the company for marketing services rendered by him. Is this covered under under " Import of Services"

regards

A. Kiran Kumar

Manager - Indirext Taxation

156 Points Joined November 2008

Yes. Being covered under the "Business Auxilary Services" and provided by the foreign agent, the marketing service has to be treated as 'import of service'.