Under Finance Bill (2) 2009 - two taxable services namely transport of goods by road and commission paid to foreign agents have been exempted from the leavy of service tax, if the exporter is liable to pay service tax on reverse charge basis. The present cap of 10% on commission agency charges has been retained, and the exporter will have to pay service tax on the amount of commission which is in excess of 10%. Explanatory Notes mentioned in Finance Bill 2009.
The exemption shall be limited to 1% of the FOB Value of export goods for which the said service has been used. Notf 18/2009 dt 07.07.2009.
Which one is to be followed or the Notification is to be amended ?
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S. Banerjee
CAclubindia
