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Service tax on export commission

Queries 561 views 1 replies

ONE OF MY CLIENT (100% EXPORTER) PAYS COMMISSION  AFTER DEDUCTING TDS TO THE INDIAN COMMISSION AGENT FOR SUCH EXPORT.SUCH AGENTS CHARGES SERVICE TAX AT PRESCRIBED RATE ON SUCH COMMISSION AMOUNT AND MY CLIENT COMPANY PAYS THE SAME.

UNDER SUCH CIRCUMSTANCES MY QUERRY IS THAT BEING EXPORT COMPANY WHETHER THEY HAVE TO PAY THE SERVICE TAX (I MEAN WHETHER THERE IS SPECIFIC EXEMPTION) OR CAN GET REFUND OF THE SAME, IF SO WHAT'S THE PROCEDURE..

THANKS,'

CA.SUMAN SAHA

Replies (1)

As per 42/2012- ST, Service provided by a commission agent located outside India to an Indian exporter, exemption is available upto 10% of FOB. However this notification not applicable when the commission agent located in India. 

Company can avail the cenvat & utilise it for any other output liable. If no liability is there, it can for refund under notification 27/2012- ST.


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