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Service tax provision

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ajay vishwakarma

22 Points Posted on 15 March 2013

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.

Replies (2)

Arun Kumar Singh

GST Advocate

13166 Points Posted on 15 March 2013

Service tax will be applicable on commission received by you.

Varsha Mehta

Student CS

36 Points Posted on 16 March 2013

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.