Service tax on foreign commission received

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Company ABC Private limited act as a representative to foriegn university. ABC helps in sending prospective students who aspires to go abroad for further studies, to the Foreign University abroad ,(with whom ABC enters into an agreement to act as a representative). ABC takes the fees here in INDIA and remits the fund to the university as per the agreement.

 

 on receiveing an Invoice from ABC PVT.Ltd,  Foreign University remits commission to ABC in India

 

My question is whether this commission received from Foreign university is subject to Service Tax in India, with due consideration to EXPORT OF SERVICES, PLACE OF PROVISION OF SERVICE RULES(Rule 9 and Rule 3), and the recent amendment on SERVICE TAX ON SERVICES OF INDIAN COMMISSION AGENT & STOCKBROKER TO FOREIGN PRINCIPLE

Replies (1)
As prima facie, it looks export of service. But as per Place of Provision of Service Rules 2012 :-

Rule 9. Place of provision of specified services.-

The place of provision of following services shall be the location of the service provider:-

(a)  Services provided by a banking company, or a financial institution, or a non-banking financial company, to account holders;

(b) Online information and database access or retrieval services;

(c)  Intermediary services;

(d)  Service consisting of hiring of means of transport, upto a period of one month.

so clause (c) if it is Intermediary Services then Service Provider will be liable for Service Tax.

 


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