service tax on brokerage

Can exporter pay brokerage/commission 3% on exports items to overseas broker/commission agent without Service tax charged/paid ?

Replies (3)

As per notification no 18/2009:

service provided by a commission agent located outside India and engaged under a contract or agreement or any other document by the exporter in India, to act on behalf of the  exporter, to cause sale of goods exported by him is exempt subject to the condition that:

1)The exporter shall declare the amount of commission paid or payable to the commission agent  in the shipping bill or bill of export, as the case may be.

2) The exemption shall be limited to one per cent of the free on board value of export goods for which the said service has been used.

 

So, value of commission over and above one percent of the FOB value of export will attract service tax.

one of my client was doing brokerage business and receives commission.  can he come in the perview of service tax  if his gross receipts exceeds R. 10 l;acs. please urgent

 

shanmukha

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