Sir,
I would like to know Service Tax provision Related to commission earn on supply of plant and machinery to indian companies from foreign companies.
for eg. A company is situated in India and it is an agent of other companies situated outside India, from them it
supply the plant and machinery to Indian companies on which it earns commission.
Service tax will be applicable on commission received by you.
Please refer Place of Provision of Service Rules have been notified w.e.f. 1-7-2012.
In which place of provision of service in case of intermediary clarified that : In case of intermediary of services, place of provision of service is the location of service provider [rule 9(c) of POPS Rules]
In case of intermediary of goods (like commission agent of goods), rule 3 will apply i.e. location of service receiver will be the place of provision of service.
Therefore service receiver (Indian Company) liable to pay service tax.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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