This is a query regarding my client who is a private limited company.
The company is formed in india.
Activity of the company : The company is in close contact with Pharma Manufacturers in india. These pharma manufacturers need hi tech machines from foreign manufacturers. My client company is also having its contact with these foreign manufacturers of machineries. My client company will ask the foreign manufacturer to deliver the required machinery to the indian pharma company.
For this activity, my client company charges commission (based on sales value) from the foreign manufacturer only.
This commission is directly credited by the foreign manufacturer in my client company's bank account.
Is this commission chargeble to service tax under Bussiness Auxillary Services or any other service? or is this commission exempt under Export/Import of Services rules.
If this Service Tax is chargable, than can i claim CENVAT Credit for the same?
Please note that, the company is about the cross the exemption limit of Rs.10 lacs.
Early reply will be highly appreciated
Regards
CAclubindia
