taxes on Foreign commission received

We promote business of a foreign co. in india. The customers in India directly place the order on the foreign company and import the goods directly by remittance through L/C or TT. We get the difference in the foreign co's list price and the order value back by TT or get 5 commission.  My query is whether we are a) liable to pay service tax on the amount thus recd. b) any income tax examption on foreign earnings?after what amount of foreign commission I am liable to income tax and what are other taxex.

 

 

Replies (1)

WE THE INDIAN EXPORTER PAYING  WEIGHING  & CONTROLLING  CHARGES  TO  OUR  AGENT  AT  ABROAD  (PAKISTAN)  FOR  EXPORT  OF  RAW  COTTON. 

WHETHER TDS IS APPLICABLE  ON  THIS AMOUNT  U/S  195  OF  I.T.ACT?

YOU ARE AWARE THAT TDS  ON EXPORT COMMISSION IS EXEMPTED  AS PER CIRCULAR NO.786 DT.07/02/2000.

WHETHER ABOVE PAYMENT OF WEIGHING & CONTROLLING CHARGES IS ALSO EXEMPTED UNDER CIRCULAR NO.786 DT.07/02/2000?

PLS. EXPLAIN.

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