Service tax query

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ripu sudan sharma

Student

24 Points Posted on 25 September 2012

Dear Sir,

I am working in a Packer & Movers Company and we provide the relocation services to our client.

I have a query regarding the levy of Service Tax on our services.

Suppose we have to shift the client;s household items to Singapore. Now after packing & loading the goods on the port,

goods are sent to Singapore port and there we take the services of agent to move the goods from Singapore port to its final destination, i.e. at client home situated in Singapore.

For this services provided by agent to us, he raises bill on us and we do payment.

Now my query is this, whether this payment made by us to our foreign agent is exempt from Service Tax???

As there is a Notification No-8/2011 of ST which exempt this services from the levy of ST.

Kindly solve my query and obliged.

Thanks & Regards...

Replies (4)

CA.Ankur Khandelwal

Owner

235 Points Posted on 25 September 2012

Service provide till the india port is taxable....... service provide in foreign is exempt from service tax if consideration received in foreign currency

Rubul

Student

117 Points Posted on 27 September 2012

Agree with CA Ankur. You are not liable to pay ST on the service provided by your agent outside india and your reference to exemption notificaiton is correct.

Vikas

1245 Points Posted on 27 September 2012

Dear Ripu,

The commission agent services are considered under "Intermediary services" for the purpose of Rule 9 Place of Provision of Services Rule, 2012; hence the place of provision of such service is the location of service provider;

Therefore, as per Rule9 of the said Rules read with Sec.66B, no service tax can be levied on such payments to Commission agent located outside India.