Service tax on comission

Hello...

If service is exported, there is no service tax liability. If the services are exported, the Cenvat credit is not required to be reversed. Assessee can utilise credit for payment of service tax on other services.

Basic principle of taxation is that ‘goods and services should be exported, taxes are not to be exported’. Another principle is that service tax can be levied only if service is provided or received or consumed in India.
 

Thanks...

There  are some questions-

Is the foreign company owning any office in india?

Is the Indian company recieving commission in Foreign currency?

Yes, sir the company is an Indian co. and the comission is billed in foreign currency and receipt is done in foreign currency.

Then 

In the present case service tax is not applicable by virtue of export of service rules 2005 which states if following conditions are fulfilled a) such services is provided from India & used outside India b) payment for such services is received by the services provider in convertible foreign exchange.

Hope Its clear @ Aishwarya..

But thn Asif, with effect from 1st july, 2012 its taxable na?

Exactly Asif, here the service is rendered within the taxable territory, ie service rendered inside India, so service tax is applicable right?

I'm not clear as to whether reverse charge is applicable under this. Please clarify.