Greetings,
My company is an India based company which acts as a buying agent for our client based in USA. My company recives commission from the Indian manufacturer though. We are paid in INR by the manufacturer after the succesful completion of the transaction. The transaction is directly performed between the buyer and the seller and is 100% export oriented. Should we charge Service Tax to the buyer?
Any help would be greatly appreciated.
Thank you so much from your prompt response. I was reading through the Mumbai exceise website and came across this.
Q.12.1) Whether the services provided by a Commissioner Agent are taxable?
Ans”- A Commissioner Agent is a person who causes sale or purchase of goods on behalf of another person for a consideration which is based on quantum of such sale or purchase. Business auxiliary services provided by a Commission Agent are exempted from payment of service tax.
This FAQ answer on that website caused all the confusion. Can somebody please clarify the same?
What is the date of question/answer by Mumbai Excise ?
It is in their FAQ section with no dates mentioned. Here's the link -> https://www.mumbaicentralexcisecbec.gov.in/faq.htm
It is question number 12.1. Thank you so much for your valuable replies.
We are indeed raising an invoice in both USD and INR. The amount due is a certain % of total amount in USD. So we raise an invoice with amount mentioned in USD and then using the fx rate we also provide the INR amount.
Thank you so much guys for your prompt responses. I will apply for a ST number tomorrow itself.
CAclubindia
